The discounted cash flow model may be the best known, but the capital asset pricing model, also known as the CAPM, is another one of the more foundational financial models taught in business school.

Bruner, Robert, Wei Li, Mark Kritzman, Simon Myrgren, and Sebastien Page. "Market Integration in Developed and Emerging Markets: Evidence from the CAPM." Emerging Markets Review 9, no. 2 (June 2008): ...

The higher it is over 1 is how much better a risk-adjusted rate of return it has. Capital Asset Pricing Model (CAPM) The Capital Asset Pricing Model (CAPM) is a mathematical model that seeks to ...