13.1 The Capital Asset Pricing Model in Brief Developed in the 1960's by Sharp,and independently by Lintner,and Mossin It answers the question What would equilibrium risk premiums be if people had the same set of forecasts of expected returns,risk,and correlations and all chose their portfolios according the principles of efficient diversification (Refer to chapter12) THE COURSE OF FINANCE 2017 SPRING SJTU13.1 The Capital Asset Pricing Model in Brief  Developed in the 1960’s by Sharp, and independently by Lintner, and Mossin  It answers the question  What would equilibrium risk premiums be if people had the same set of forecasts of expected returns, risk, and correlations and all chose their portfolios according the principles of efficient diversification (Refer to chapter12) THE COURSE OF FINANCE 2017 SPRING SJTU 5