Lecture

Capital Asset Pricing Model: Applications and Implications

In course
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Description

This lecture covers the application of the Capital Asset Pricing Model (CAPM) in finance. It explains how the CAPM relates risk and return, estimating betas, calculating expected returns, and determining the cost of capital. The lecture also delves into the implications of the CAPM in practice, such as the risk premium for diversifiable risk and the role of alpha in portfolio performance.

Instructor
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