Capital asset pricing model and discounted cash flow


Problem:

Why does the Capital Asset Pricing Model (CAPM) give a different result than Discounted Cash Flow (DCF)? Please fully explain this as I understand both CAPM and DCF, but am not sure how to put it into words.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Capital asset pricing model and discounted cash flow
Reference No:- TGS02037350

Now Priced at $20 (50% Discount)

Recommended (98%)

Rated (4.3/5)