CAPM - What is the Capital Asset Pricing Model
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- Опубликовано: 23 сен 2018
- In this video, we look at the capital asset pricing model - CAPM for short. We dive into a quick example and look at how it can be used to help value a stock.
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I learned more in these 5 mins about CAPM then anything with my investments professor
This comment represents me also.
Outstanding, isn't it?
Professors are there to do their research, not to teach. The level of teaching in my economics faculty is often of so low quality that they should really hire lecturer's that are primarily there to teach and will be replaced if they are badly reviewed. As of now they have a monopoly on their course and have no incentive to improve.
I to
me too, it's really way better than my text book
To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough. I've been quite unsure about investing in this current market and at the same time I feel it's the best time to get started on the market, what are your thoughts?
Since the crash, I've been in the red. I’m playing the long term game, so I'm not too worried but Jim Cramer mentioned there are still a lot of great opportunities, though stocks has been down a lot. I also heard news of a guy that made $250k from about $110k since the crash and I would really look to know how to go about this.
There are actually a lot of ways to make high yields in a crisis, but such trades are best done under the supervision of Financial advisor. I've been getting assisted by a FA for almost a year now, I started out with less than $200K and I'm just $19,000 short of half a million in profit.
Impressive can you share more info?
Sharon Lee Peoples is my licensed manager. Search the name. and you’d find necessary details to work with to set up an appointment.
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
whenever I can't understand in class, I came to youtube. Thank you so much to the people who shared their knowledge generously. A big THANK goes to RUclips as well.
Its amazing how these videos are so quick, concise, and easy to learn from
Why you don t go and read at the library or buy a book and learn because it will save you wasting time for nothing. Good luck with your future investements, go and catch up with people lifestyle.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@julie-e3t However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
@@Richard-q1 Oh please I’d love that. Thanks!
@@julie-e3t Clementina Abate Russo is her name
Lookup with her name on the webpage.
this video was absolutely brilliant, explained in five mins what my lecturer tried to explain in 5 lectures
Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere??
Thank you for the video. The simplest and clearest video about CAPM.
Very helpful- thank you for explaining this so thoroughly and taking it one step further to explain use case for where to apply knowing CAPM!!
Your approach is really straight nd indept as well.
Loved the way you explained it.
Waiting for next video.
You give the most thorough and understandable explanations and you include all the little things that everyone else ignores and takes for granted. You're a great teacher! Thank you so much! Subscribed!
Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?
I got no words. You explained it in a very neat and a short way. Thanks a ton Sir
A great resource for CAPM. One of the foundational concepts of our time.
So easy to understand. Thanks
Your work is still paying off !!! Thank you
I appreciate the clear and easy explanation.
Loved the quick and easy explanation. Graphics are awesome
💯 Wow all the videos are great here, particularly the way of explanation is awesome. My financial thirst ends here. Great work and God bless you. Love from india ❤❤❤
The video has the most apt clear and detailed explanation of CAPM, you made it so easy Sir. Thank you!
Thanks a ton man. Absolute learning in just 5 mins. Thanks again.
love the video, definitely not for the beginner beginner as you went over some concepts persons may have to stop and find out more about before continuing, but the level of what you covered in such a short space of time is excellent. Thanks for sharing.
great educational content and stock analysis on this channel - love it
Thank you! The link between CAPM and a DCF model now makes sense.
I'm glad you made this video. I looked up CAPM after the BA video. You make it sound so easy. Even though I know its not. Good Video!
absolutely amazing!!! so many things shown in really simple and understandable way! even if you’re not native speaker! thanks!
I watched this video 1st time and in 1st time your content and talking impressed mee.... This 1st time happening with
your voice is great. the explanation is great. the examples are awesome, simple but very effective.
Perfect!!. Thank you
This was so much more concise and clear than my professor who spent 30 minutes talking in circles around this
So well explained. love the videos.
This is an extremely well done video geez thank you
Thanks for sharing your knowledge. The video simple and clear. Very helpful.
Thank you for the detailed explanation!
very useful, thanks a lot.
Good Vid. I actually became a subscriber because of these investing basics videos. And i look at the stock analysis videos as great add ons to demonstrate how this stuff can be used in real life. Thanks for coming back to the basics.
Very helpful, thanks!
Perfectly explained thank you!
Thanks :)
Thank you so much for sharing this useful data ! Greatly appreciated.
So nicely explained
The MVP himself. Thank you so much!
Love your videos! Great presentation of information. Very clear and informative. Helping me massively along my investing journey. Many Thanks and keep up the great work. 👍👍👍
Only helpful and useful stuff. Thank you!!
Thank you for this great content!
Love from japan
Wow this was absolutely amazing thank you. Finally understand the bigger picture.
Thank you for this! Very helpful! Hoping to pass my exam today 🙏🙏
Great material :)
the explanation in video is!! It's amazing and highly recommended to everyone!
Sir, that was the best explanation, period!
thanks, it was really helpful
Great explanation!
Excellent - well done. Clear, concise and authoritative!!!
Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?
Thanks..very informative
Thanks! It's helpful!
I'm glad you liked it!!!!
Another great video!! excellent level of detail and useful examples.
Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere??
Thanks for the video :)
Thank you, this really helped
got it, thanks!
thank u very much short and clear
Wonderful explanation ! Thanks !
Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?
You explain things well. Liked it. I'd subscribe to your channel even if you haven't asked for it at the end. It's the quality of the content that persuades people to subscribe, not the request made by the video creators. :)
I appreciate that 👍🙂
Thanks! Taking my Series 66 tomorrrow
Love the Boston Accent! I subscribed, helped a lot with my Finance Final!
LOL, you picked up on the accent. I try to mask it. and thanks! I'm glad you found it helpful
@@LearntoInvest When you said popular at the end it got real obvious lmao
Thank you !
well explained, thank u bro
Thanks for this content. Have you uploaded the Arbitrage Pricing Theory video?
A didática é tão boa que consegui assimilar muita coisa mesmo não tendo domínio da língua inglesa.
very helpful
super helpful sir!
When YT videos are better than my paid Kaplan materials....
Thank you so much
Just ran into this channel. Great video, I love how you broke down the formula and explained it clearly. I would love a video about arbitrage pricing theory and multi factor models. Thanks!
Thanks and appreciate
Thank you! All the other videos on this are confusing
because he is making it too simple... and this is the only thing you probably can understand
Is too simple a bad thing? How should I have complicated it to make it better?
thank you
In the end you said discount rate or expected return, are they the same? I know CAPM calculates the expected return of a security..
Thank you so much! This was great.
Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?
Thank you for this perfect video! Could you please also make a video explaining the Arbitrage Pricing Theory and the Multifactor Model please? I will have an exam soon about those 3 and I don't understand anything from my investment professor :(
Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?
tq for the video
Great video!
Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?
Banger!
Thanks!
Helpful 😍
Really nice video! Asa question, shouldn't "expected return of the market" be the % change in the respective industry and not in the overall market? By using 9% we are considering that oil industry will grow as fast as 5G companies?
Thanks for explaining Rf & Rm. I’ve been looking for a calculator that would calculate CAPM by just inputting the stock symbol. But using 3% & 9% for Rf & Rm make it easy since all investment sites give the beta of a stock.
🤣 Yu use calucator at that level of calcul ? 🤣 Are you coming from Paleonthogic era or mezozioc era ?
Great video, just one question. What do you do if the risk-free rate is negative? It's about -0,1 where I live, do I plug that in or do I skip that step?
Thank you
great!
great explanation. if only my professor knew how to explain.
thanks alot
Good luck to y’all in college hope you guys prosper.
i wish my finance professor had seen this video. thank you for your help! finally understood something in this topic xD
Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?
@@jessicawiley2814 seems like you suddenly noticed multiple people. I see you've commented the same thing several times. I will report your comment. Thank you
Thank you so much for your efforts with making these, Could you do one on the Fama and French 5 factor model?
You could just look it up. It adds four more factors, one called SMB (small minus big) which is the risk of a company for being "small" (i.e. low market cap ~1B or lower), one called HML (high minus low) which is the risk of a company being "cheap" (high book/price vs low book/price), one is called RMW (robust minus weak) which is (counterintuitively) the risk profitable companies have, and finally one for CMA (conservative minus aggressive) which is the risk that firms that invest conservatively have. All these are tremendously difficult to calculate accurately individually, but the market as an aggregate of millions of investors gets those risks spot on in the long run most of the time (>95%).
Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere??
You explain it better than my professor. I am both mad and impressed lol
Hi great vid man, 2 questions...where did you get the $1000 dollars from as your expected cash flow? and why would you expect $1000 in 2 years?
Its an example, the expected cash flow can be any number
you need a patreon account dude. Good job as always!
Thank u very much for good video clip.
Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere??
Damn, this was good🤩
thank you!!
Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?
just my gosh, who ever came up with all this stuff?!!🤪 but thank you for helping us non-financial folks to try and better understand it all.
Wow I finally understand that Discount rates can vary depending on the pricing model
Short and crisp!
This is the first one of your animated videos I've seen. This format works perfectly for you. The script and your narration read are right on. In the "live" videos I could sense your nerves, but this format lets you relax and get your ideas across.
Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?