Intertemporal CAPM

The Intertemporal Capital Asset Pricing Model (ICAPM) is an extension of the traditional Capital Asset Pricing Model (CAPM) that seeks to explain asset pricing by incorporating the investment horizon and the dynamic nature of investors' consumption and investment decisions over time. ### Key Points of ICAPM: 1. **Multiple Periods**: Unlike the standard CAPM, which typically considers a single-period framework, the ICAPM addresses how asset returns are affected over multiple time periods.