With reference to Discounted Cash Flow Analysis of Investment Projects, what does the acronym "CAPM" stand for ?

Capital Assets Pricing Model

CAPM = Capital Asset Pricing Model.

A method used for evaluating investment opportunities, where the Risk Free Rate is added to the Risk Premium.

R = RF + B (RM - RF)

Where:

R = Expected Rate of Return (The minimum return an investor will accept for said investment)

RF = Risk Free Rate (Usually Interest on Treasury Bills are loosely used)

RM = Market Return (Average Return Generated by the Market)

B = Beta Co-efficient (Volatility of Returns of a Security of Portfolio)

Generally speaking, a solid investment is one which generates higher returns than investments carrying the same level of risk.

I agree with Professor George

Cost of equity is basically what it costs the company to maintain a share price that is satisfactory (at least in theory) to investors. The most commonly accepted method for calculating cost of equity comes from the Nobel Prize-winning

CAPITAL ASSET PRICING MODEL(CAPM),