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Management article
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Reference no. 83306
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1983

Abstract

One way for companies to get reliable information about the economic risk of capital investment strategies is to use the capital asset pricing model (CAPM). It enables them to quantify risk and to link it with the returns they expect. Alaska Interstate, Inc. is one company that has used CAPM successfully to incorporate a consideration of risk into its strategic planning process.

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Abstract

One way for companies to get reliable information about the economic risk of capital investment strategies is to use the capital asset pricing model (CAPM). It enables them to quantify risk and to link it with the returns they expect. Alaska Interstate, Inc. is one company that has used CAPM successfully to incorporate a consideration of risk into its strategic planning process.

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