CAPM in bri CAPM is a theory about equilibrium prices in the markets for risky assets It is important because it provides a justification for the widespread practice of passive investing called indexing a way to estimate expected rates of return for use in evaluating stocks and projects THE COURSE OF FINANCE 2017 SPRING SJTU 4CAPM in bri  CAPM is a theory about equilibrium prices in the markets for risky assets  It is important because it provides  a justification for the widespread practice of passive investing called indexing  a way to estimate expected rates of return for use in evaluating stocks and projects THE COURSE OF FINANCE 2017 SPRING SJTU 4