CAPM
Abbreviation with 2 meanings
| Stands for | Capital asset pricing model |
|---|---|
| Meanings | 2 |
| Categories | Business & Finance, Education & Academia |
CAPM has two meanings. It stands for Capital asset pricing model (finance) or Certified Associate in Project Management (professional certification).
Meanings of CAPM at a glance
| # | CAPM stands for | Context |
|---|---|---|
| 1 | Capital asset pricing model | Business & Finance › Finance |
| 2 | Certified Associate in Project Management | Education & Academia › Professional Certification |
1. Capital asset pricing model
Business & Finance · Finance Abbreviations
Model that estimates an investment's expected return as the risk-free rate plus beta times the market risk premium. It is the standard way to estimate the cost of equity in corporate finance and valuation.
Example: With a 4 percent risk-free rate, a beta of 1.2 and a 5 percent equity risk premium, CAPM gives a cost of equity of 10 percent.
Developed independently in the early 1960s by William Sharpe, John Lintner, Jan Mossin and Jack Treynor; Sharpe shared the 1990 Nobel Prize in economics partly for it. Pronounced "cap-em." Studies by Eugene Fama and Kenneth French found that beta alone explains stock returns poorly, leading to multi-factor models, yet CAPM remains the default in practice.
2. Certified Associate in Project Management
Education & Academia · Professional Certification Abbreviations · also used in business
Entry-level PMI certification for students and early-career professionals, requiring 23 hours of project management education and a 150-question exam based on PMI's standards. It needs no project experience.
Example: She earned the CAPM in her senior year to strengthen her application for project coordinator roles.
CAPM holders often move on to the PMP once they meet its experience requirements. The certification is valid for three years and requires 15 PDUs to renew. Pronounced "CAP-em".
Related abbreviations
More finance abbreviations
- ATM – At-the-market offering
- AUM – Assets under management
- CAGR – Compound annual growth rate
- CapEx – Capital expenditure
- CCC – Cash conversion cycle
- CIM – Confidential information memorandum
- CVC – Corporate venture capital
- D/E – Debt-to-equity ratio
See all 88 finance abbreviations →
More professional certification abbreviations
- CA – Chartered Accountant
- CAIA – Chartered Alternative Investment Analyst
- CAMS – Certified Anti-Money Laundering Specialist
- CAP – Certified Administrative Professional
- CASP+ – CompTIA Advanced Security Practitioner
- CBAP – Certified Business Analysis Professional
- CCIE – Cisco Certified Internetwork Expert
- CCIM – Certified Commercial Investment Member