Chapter 13 Contents 13.1 The Capital Asset Pricing Model in Brief 13.2 Determining the Risk Premium on the Market Portfolio 13.3 Beta and Risk Premiums on Individual Securities 13.4 Using the CAPM in Portfolio Selection 13.5 Valuation& Regulating Rates of Return UeSTc
Introduction In this class, we again look at the stock return data, but with a very different view point; Previously, we examined the data through the \eyes\of CAPM. We had a noble intension, although it didn't work very well; Now we are going to get our hands \dirty\, and plunge
Course overview The focus of this course is on financial theory and empirical evidence that are useful for investment decisions. The topics include: Financial theory: This include portfolio theory, CAPM, APT, discount factor model, they are important for decision-making in investments;
