CAPM • CAPM stands for Capital Asset Pricing Model. The CAPM is an equilibrium model that specifies the relationship between risk and required rate of return for assets…

Advanced Portfolio Theory (Lecture Notes) October 2004 Prof. Dr. Thorsten Hens [email protected] i TABLE OF CONTENTS Table of Contentsi List of Symbolsv CHAPTER 1:I NTRODUCTI…

Stochastic Models in Finance and Insurance Script by Ilya Molchanov www.imsv.unibe.ch/∼ilya Michael Schmutz [email protected] Recommended books: Primary •…

Department of Accounting & Information Systems BBA Program. A Term Paper on “Portfolio Management” Course Name : Financial Management Course No : 2104 Date of Submission…

1. Chapter 9 Capital Market Theory 2. Explain capital market theory and the Capital Asset Pricing Model (CAPM). Discuss the importance and composition of the market portfolio.…

1. The Capital Asset Pricing Model This chapter has one of the most important models in investment modeling.It addresses the question of what is a reasonable price for an…

Capital Asset Pricing Model Part 1: The Theory Introduction • Asset Pricing – how assets are priced? • Equilibrium concept • Portfolio Theory – ANY individual investor’s…

1. Summary of Courses in Finance (State Exam) Mihály Ormos– Gábor Bóta 2. Some Words on the State Exam18 questions in four different blocks (subjects) Accounting (3…

Slide 1 Slide 2 Money, Banking & Finance Lecture 3 Risk, Return and Portfolio Theory Slide 3 Aims Explain the principles of portfolio diversification Demonstrate the…

Slide 1 Slide 2 Money, Banking & Finance Lecture 5 The Capital Asset Pricing Model CAPM Slide 3 Aims Analyse the determinants of the equilibrium expected return on an…