Main Regulations of CAPM Model and Its Modern Modification

Abstract

The article gives readers the main regulations of elaboration of capital actives evaluating model (CAPM) theory, topics of its practical usage, common ways of definition of investments (securities) optimal portfolio and on the basis of CAPM theory it is discussed evaluating methods of investing business, and it is highlighted two criteria of portfolio chosen by an investor-profit and risk. Besides, it is discussed modern modification of the mentioned model on the point of time horizon, a problem of time factor measurement while evaluating risk and profit, also evaluation of investing effectivity by using sharp coefficient. The work presents and evaluates possible income of securities and possibilities of risks in a modern way, which is characteristic only for CAPM model and it is considered to be its positive side.