Equilibrium Market
A price region that represents a balance between demand and supply.
Equilibrium market price of risk
The slope of the capital market line (CML). Since the CML represents the return offered to compensate for a perceived level of risk, each point on the line is a balanced market condition, or equilibrium.
CAPM is useful for estimating the correct equilibrium market price of company's shares as well as the cost of a company's equity, taking account of the risk characteristics of a company's investments, both business and financial risk.
Assumptions ...
1. The efficient markets hypothesis, which states that equilibrium market prices fully reflect all available information. It is widely interpreted as suggesting that it is impossible to systematically "beat the market" through active management.
 See also: Market, Share, Portfolio, Asset, Return
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