Capital Asset Pricing Model Mind Map
See how the CAPM formula, beta and the security market line connect, then build a map from your own finance notes or PDF.
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CogniGuide at a glance
- What you get
- Interactive mind maps of the main ideas and how they connect. Free: overview maps (detailed maps on your first 3 creations). Plus: detailed maps with supporting concepts.
- Exports
- Your first PDF or PNG export is free; Plus exports anytime.
- Price
- Free plan: 5 creations a week, up to 3 a day. Plus: $9.99/month or $99.90/year (USD; local prices at checkout).
- Sign-up
- A free account is required before you create anything (Google or email). No credit card.
- What you can upload
- PDF, Word (.docx), PowerPoint (.pptx), plain text or Markdown, and images (PNG, JPG, WebP, GIF), or type a topic. One file per creation on the free plan; several at once on Plus.
How it compares: vs Knowt · vs Quizlet · vs NotebookLM · vs Mapify
Build a CAPM Map From Your Course Material
Upload lecture slides or a textbook chapter and get a map of the model's inputs, formula and assumptions.
Use your own finance notes
Upload a PDF, Word file, slides or text notes and the AI maps the CAPM content you actually study.
See the formula's parts
Branches separate the risk-free rate, beta and market risk premium so each input is easy to review.
Turn the map into a quiz
Test yourself on beta, the SML and assumptions, and use the same notes to make flashcards.
How to Make a CAPM Mind Map
Three steps take you from your lecture notes to a branching map you can expand and test yourself on.
- 1
Add your material
Upload your notes or slides, or type CAPM as the topic to start.
- 2
AI builds the map
The formula, inputs, SML and assumptions become connected branches you can expand.
- 3
Study, quiz or export
Expand weak areas, turn the map into a quiz, or export it as PNG or PDF for revision.
Capital Asset Pricing Model Map Overview
The capital asset pricing model (CAPM) estimates the expected return on an asset from its systematic risk. It states that expected return equals the risk-free rate plus beta multiplied by the market risk premium. A good map separates the model's inputs, its graphical form and the assumptions behind it, so each part can be studied on its own.
- CAPM formula: expected return = risk-free rate + beta × (market return − risk-free rate)
- Risk-free rate: the return on a government bond used as the baseline
- Beta: sensitivity of an asset's return to overall market movements
- Security market line: the graphical plot of CAPM expected return against beta
Use the map to revise each input, test how beta changes the result, and check the assumptions before an exam. Build a version from your own course notes with CogniGuide to see your material organized the same way.
Capital Asset Pricing Model FAQ
Answers on the model itself and on building a CAPM map from your notes.
What does beta measure in CAPM?
Beta measures how sensitive an asset's return is to movements in the overall market. A beta of 1 means the asset tends to move with the market, while a beta above 1 means it amplifies market moves and a beta below 1 means it moves less.
What are the main assumptions of CAPM?
CAPM assumes investors are rational and hold diversified portfolios, can borrow and lend at the risk-free rate, and share the same expectations about returns. It also assumes markets have no taxes or transaction costs.
Which files can I upload to make a CAPM map?
You can upload a PDF, Word (DOCX) or PowerPoint (PPTX) file, a text or Markdown file, or an image. You can also type a topic instead.
Can I turn a CAPM map into a quiz?
Yes. Each map can be turned into a quiz to test yourself, and the same notes can be used to make flashcards. A free plan allows 5 creations a week.