brealey

havioral finance. They explore how cognitive biases and market psychology can lead to deviations from rational price settings, thereby impacting investment and financing decisions. This inclusion reflects a pragmatic recognition that finance professionals must be awar

set Pricing Model (CAPM) CAPM links risk and expected return: Expected Return (E[r]) = Risk-Free Rate + Beta × (Market Return - Risk-Free Rate) Where: Beta measures an asset's sensitivity to market movements. The model helps investors understand