TESTING THE APPLICABILITY OF THE CAPM MODEL USING SELECTED SHARES LISTED ON THE BELGRADE STOCK EXCHANGE

One of the basic types portfolio valuation as well individual company shares is CAPM (Capital Asset Pricing) model, which uses a well-known measure systemic risk in its analysis, beta. The model analysis link between (beta) and expected market return. Guided by this monthly returns selected on Belgrade Stock Exchange period from 2011 to 2021 was performed research. In research, beta coefficient calculated with help covariance return stock results their statistical value were confirmed linear regression test. rest research tests applicability actions same way, SML (security line) devised, graphical representation model. indicated that assumptions are not applicable predictor future due various other elements affect price movements covered