The Capital Asset Pricing Model

Objective

• Explain risk in the CAPM context
• Explain market efficiency in a CAPM context

Reading

• Chapter 9: Benchmarked Costs of Capital
• Chapter 10: The Capital Asset Pricing Model

Assignment

• Estimate Beta

CAPM Introduction @ Edspira

Systematic vs Idiosyncratic Risk @ Edspira

What is Beta? @ Edspira

Portfolio Beta @ Edspira

Security Market Line @ Edspira

Capital Market Line @ Edspira

Equity Risk Premium @ NYU

Advanced

CAPM and APT Lecture