Principles of the Capital Asset Pricing Model and the Importance in Firm Valuation

Focusing on the concept of risk, this research paper explores the inherent uncertainties in decision-making within the realm of finance and investment. It highlights how unforeseen events can impact outcomes, emphasizing the importance of risk assessment in financial management. The paper, graded highly at the University of Applied Sciences Berlin, delves into the implications of risk in business economics, providing insights for undergraduate students studying financial management.