What is the Meaning of capm?

CAPM, or the Capital Asset Pricing Model, is a financial model used to determine the expected return on an investment based on its systematic risk, as measured by beta. It establishes a relationship between the expected return of an asset and its risk relative to the overall market. The formula is expressed as: Expected Return = Risk-Free Rate + Beta × (Market Return - Risk-Free Rate). CAPM helps investors assess the potential return of an investment while considering its risk in the context of market movements.