'Security market line sml' diaporamas de présentation

Risk and Rates of Return

Risk and Rates of Return. Return. Risk. RISK. How to measure risk (variance, standard deviation, beta) How to reduce risk (diversification) How to price risk (security market line (SML) , CAPM). For a Treasury security, what is the required rate of return?. Required

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Test Bank for Intermediate Financial Management 13th Edition by Eugene F. Brigham

Test Bank for Intermediate Financial Management 13th Edition by Eugene F. Brigham

1.61k views • 82 slides

Chapter 6 Why Diversification Is a Good Idea

775 views • 74 slides

Return, Risk, and the Security Market Line

Return, Risk, and the Security Market Line. Chapter 13. Outline. Expected Returns and Variances Portfolios Risk, Diversification, and Portfolio Risk Beta and the Security Market Line. Expected Returns and Variances. Expected Return.

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Lecture 8

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Chapter Three Capital Asset Pricing Model

Chapter Three Capital Asset Pricing Model. Perfect Market Conditions. Look for higher return, nonsatiation. Look for lower risk, risk aversion. Assets are infinitely divisible. Taxes and transaction costs are negligible All investors have the same one-period.

493 views • 37 slides

Investment Analysis and Portfolio Management

Investment Analysis and Portfolio Management. Lecture 7 Gareth Myles. The Capital Asset Pricing Model (CAPM). The CAPM is a model of equilibrium in the market for securities.

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Overview of Risk and Return

Chapter 3. Overview of Risk and Return. What is Risk?. A risky situation is one which has some probability of loss The higher the probability of loss, the greater the risk The riskiness of an investment can be judged by describing the probability distribution of its possible returns.

369 views • 25 slides

Capital Asset Pricing Model

Capital Asset Pricing Model. CAPM Security Market Line CAPM and Market Efficiency Alpha ( a ) vs. Beta ( b ). CAPM. Capital Asset Pricing Model An equilibrium model underlying modern finance theory Based on diversification principle and simplified assumptions Who developed it?

209 views • 19 slides

Capital Asset Pricing Model

Capital Asset Pricing Model. CAPM Security Market Line CAPM and Market Efficiency Alpha ( a ) vs. Beta ( b ). CAPM. Capital Asset Pricing Model An equilibrium model underlying modern finance theory Based on diversification principle and simplified assumptions Who developed it?

736 views • 18 slides

Chapter 18 CAPITAL ASSET PRICING THEORY

Chapter 18 CAPITAL ASSET PRICING THEORY. What is the capital market line (CML)? How is the Capital Asset Pricing Model (CAPM) developed? What is the difference between the standard deviation risk and beta risk measures? How can an investor apply the CAPM to security analysis?

186 views • 18 slides

Chapter 7

Chapter 7. Portfolio Theory and Other Asset Pricing Models. Topics in Chapter. Portfolio Theory Capital Asset Pricing Model (CAPM) Capital Market Line (CML) Security Market Line (SML). Efficient Set. Expected Portfolio Return, r p. Feasible Set. Risk, ? p.

281 views • 17 slides

The CAPM (cont’d)

The CAPM (cont’d). Market portfolio Capital market line Security market line Fama and French model. CAPM: recap. Equilibrium relationship between the risk and expected return on risky assets Builds on Markowitz portfolio theory Each investor is assumed to diversify his or her portfolio

381 views • 13 slides

Portfolio Risk

Portfolio Risk. In general, the riskiness of a portfolio ( ? portfolio ) will - Systematic vs. Diversifiable Risk. Beta. Beta Defined - Examples: Beta = 1.0 Beta = 0.5 Beta = 2.0 Beta < 0.0. Calculating Beta.

404 views • 9 slides