The single-index model (SIM) is a simple asset pricing model to measure both the risk and the return of a stock. The model was developed by William Sharpe in 1963 and is commonly used in the finance industry, including portfolio optimization.
The single-index model (SIM) is a simple asset pricing model to measure both the risk and the return of a stock. The model was developed by William Sharpe in 1963 and is commonly used in the finance industry, including portfolio optimization.
Source: Wikipedia "Single-index model" · CC BY-SA 4.0
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