1. The CAPMClass 11Financial Management, 15.414 2. TodayThe CAPMMeasuring riskSystematic vs. diversifiable riskThe trade-off between risk and return ReadingBrealey and Myers,…
Slide 1MIT SLOAN SCHOOL OF MANAGEMENT Class 11 15.414 The CAPM Class 11 Financial Management, 15.414 Slide 2 MIT SLOAN SCHOOL OF MANAGEMENT Class 11 15.414 Today The CAPM…
Slide 11 Topic 4 (Ch. 9) The Capital Asset Pricing Model (CAPM) The CAPM The market portfolio The capital market line The risk premium on the market portfolio Expected returns…
Slide 1Modern Portfolio Theory The Factor Models and The Arbitrage Pricing Theory Chapter 8 By Ding zhaoyong Slide 2 Return-generating Process and Factor Models Return-generating…
Slide 11 FINC4101 Investment Analysis Instructor: Dr. Leng Ling Topic: Portfolio Theory II Slide 2 2 Learning objectives 1. Explain the benefit of diversification and identify…
Slide 1 CHAPTER NINE THE CAPITAL ASSET PRICING MODEL Slide 2 THE CAPM ASSUMPTIONS n NORMATIVE ASSUMPTIONS expected returns and standard deviation cover a one-period investor…
FIN 402 Capital Budgeting and Corporate Objectives Yunjeen Kim 6. The CAPM. Agenda The Nature of Risk The Capital Asset Pricing Model How to Get a Discount Rate Using the…
Class 7 Class 8 The Capital Asset Pricing Model ‹#› Efficient Portfolios with Multiple Assets E[r] s 0 Asset 1 Asset 2 Portfolios of Asset 1 and Asset 2 Portfolios of…
Slide 1 Capital Asset Pricing Models Slide 2 Market risk is the only risk left after diversification Return that investors get in the market is rewarded for market…