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

Andrew Lo @ MIT

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