TAILIEUCHUNG - Lecture Investments – Chapter 9: The capital asset pricing model

The capital asset pricing model, almost always referred to as the CAPM, is a centerpiece of modern financial economics. The model gives us a precise prediction of the relationship that we should observe between the risk of an asset and its expected return. | CHAPTER 9 THE CAPITAL ASSET PRICING MODEL 1 THE CAPITAL ASSET PRICING MODEL The Capital Asset Pricing Model Extensions of the APM The CAPM and Liquidity 2 THE CAPITAL ASSET PRICING MODEL The capital asset pricing model is a set of predictions concerning equilibrium expected returns on risky assets. Harry Markowitz laid down the foundation of modern portfolio management in 1952. The CAPM was developed 12 years later in articles by William Sharpe, John Lintner, and Jan Mossin. 3 THE CAPITAL ASSET PRICING MODEL We will approach the CAPM by posing the question “what if,” where the “if” part refers to a simplified world. Positing an admittedly unrealistic world allows a relatively easy leap to the “then” part. 4 THE CAPITAL ASSET PRICING MODEL Once we accomplish this, we can add complexity to the hypothesized environment one step at a time and see how the conclusions must be amended. This process allows us to derive a reasonably realistic and comprehensible .

• Tài chính doanh nghiệp
• Investment environment
• Lecture Investments
• Active portfolio management
• Capital markets
• Capital asset pricing model
• Market risk premium
• Investment analysis
• Portfolio management
• Investment management
• Investment theory
• Investment companies
• Time value of money
• Doctoral thesis summary
• The impact of the investment environment
• Investment decisions
• Small and medium enterprises
• Investment decision of the business
• Characteristics of investment