Capital & Digital Asset Pricing Model

The Capital Asset Pricing Model (CAPM) defines the required rate of return on an investment by accounting for market risk. It assumes that investors already hold a fully diversified portfolio. This calculation method considers the level of systematic risk a company faces about the overall stock market. CAPM also assumes a uniform transaction horizon to make the returns of various securities comparable.

Definition of Investment Management

Investment management involves decision-making, market research, selecting, and monitoring a portfolio of assets to achieve the investors' financial objectives. The aim is to optimize returns while managing risk in the best interest of the investors.

Digital financial assets refer to digital rights to an asset, which are issued, recorded, and traded in token form using a distributed ledger, such as blockchain technology.