would you ever use it to make personal investment decisions? How can an individual investor use or think about CAPM? Please include references.

CAPM

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CAPM

Capital asset pricing models illustrates the association of risks in certain investments. CAMP gives an overview calculation of the investment risk and the returns that an investor expects from an investment. The model is useful in making decisions on which securities to invest in thus identifying profitable stock.  An investor can use CAMP to assess the risks likely to face available securities in the market. With the assessment, the investor can make decisions on investing in stock that has minimum risks, preventing any potential financial loss.