#6 CAPITAL ASSET PRICING MODEL (CAPM) | Security Market Line, Assumptions, Pros & Cons of CAPM скачать в хорошем качестве

#6 CAPITAL ASSET PRICING MODEL (CAPM) | Security Market Line, Assumptions, Pros & Cons of CAPM

What is the "fair" return for the risk you are taking? In this 6th video of our AFM Portfolio Management series, we break down the Capital Asset Pricing Model (CAPM). CAPM is the bridge between risk and required return. If you are a CA/CMA student, mastering the CAPM formula and its theoretical underpinnings is non-negotiable for your exams. We move from the math of Beta (covered in Video #5) to its practical application in pricing assets. What we cover in this video: CAPM Assumptions: The "Perfect World" scenarios (Rational investors, no taxes, risk-free borrowing). The CAPM Formula: Deconstructing and, Advantages: Why it's the industry standard for calculating the Cost of Equity. Limitations: Real-world challenges like changing Betas and the search for a true Risk-Free Rate. Security Market Line (SML) --- Resources: Watch Video #5 (Covariance & Beta):    • #5 Covariance, Correlation Coefficient & B...   Full AFM Playlist:    • Portfolio Management (AFM) 📈   Join our Telegram for Notes: https://t.me/CANandJha Subscribe and hit the bell icon! In Video #7, we will take CAPM to the next level. #CAPM #AFM #CapitalAssetPricingModel #CAFinal #CMAFinal #PortfolioManagement #InvestmentFinance #CostOfEquity #RiskPremium #NandJhaAFM