Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM) (FRM P1 2021 - B1 - Ch5)

[@AlexNangle]

This is so much better than my textbook. So much better. Thank you.

[@pedrofolque7899]

16:52 - Example on Beta
24:49 - CML Example
34:06 - Sharpe Ratio Example

[@quincyreinevergara8822]

wow the information shared here is incredible

[@analystprep]

You're welcome. If you like our video lessons, it would be appreciated if you could leave us a review at www.trustpilot.com/review/analystprep.com

[@erickjimenez4601]

Really well made I understood well thanks professor

[@analystprep]

You are welcome! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a Google review using this link: g.page/r/CQIlM78xSg01EB0/review

[@allblackblue]

Really great way to develop this concepts

[@analystprep]

Glad you like it!

[@raulortiz4998]

WOW 1 week of class resume in 50 minutes

[@analystprep]

:)

[@user-vk5xs1sb6r]

Q

[@djJungleboy]

The sample size for S &P is 500 I assume, but what number and what is being measured for standard deviation of security ( x number of years of return?)

[@theamertens6433]

you da bomb! thank you for the clear explanations

[@Tyokok]

what is the market portfolio? what's special about this tangent portfolio and we must purchase? Thanks!

[@dhruthij7430]

So nicely explained sir

[@analystprep]

Thanks for liking! If you like our video lessons, it would be helpful to spread the word if you could take 2 minutes of your time to leave us a review at www.trustpilot.com/review/analystprep.com

[@ujjwalupadhyay2447]

sir, why sml is only applied on individual stock and not for portfolios

[@bahadurmammadov8770]

Thanks you so much
💜

[@analystprep]

You're welcome 😊

[@manoj-nandasena]

So helpful sir. Thank you so much.

[@analystprep]

Most welcome!

[@nosao2748]

God Bless You!

[@gorthorki]

Thank you so much 😀👌

[@analystprep]

You're welcome 😊

[@mikeamine375]

thank you for this wonderful video

[@analystprep]

Glad it was helpful! If you like our video lessons, it would be helpful if you could take 2 minutes of your time to leave us a review here: www.trustpilot.com/review/analystprep.com

[@alexs934]

15:33 σ^2m is variance not σm

[@alvinchow2024]

It’s a really helpful video

[@Aim4sixmeals]

Thank you sir

[@analystprep]

Welcome

[@ngunitv]

apply job accounting directing to hr or overral

[@sayednab]

isn't one standard deviation 68%?

[@richardyeboah3851]

Thank you a lot Sir

[@analystprep]

Most welcome! If you like our video lessons, it would be helpful to spread the word if you could take 2 minutes of your time to leave us a review at www.trustpilot.com/review/analystprep.com

[@oisinmcnally5952]

Legend

[@shubhendukumar1972]

Thanks a lot

[@analystprep]

Most welcome

[@karpagavalliramachandran5616]

Is this based on the new syllabus? Please let me k ow. Thank you!

[@analystprep]

Hi. Yes, these are the learning objectives from the new syllabus.

[@nasratwaha610]

What are the differences between portfolio theory and CAPM?

[@analystprep]

Hi Nasra.
"CAPM simultaneously simplified Markowitz's Modern Portfolio Theory (MPT), made it more practical and introduced the idea of specific and systematic risk. Whereas MPT has arbitrary correlation between all investments, CAPM, in its basic form, only links investments via the market as a whole." Source: ebrary.net/7079/business_finance/what_modern_portfolio_theory/
I hope this helps!

[@abbaabba8978]

@@analystprep yes thks

[@ngunitv]

apply for accounting

[@Xenublax2]

"You forgot Jack Treynor!" - Franco Modigliani, probably.

[@ngunitv]

cleanmethotthankyou

[@JuliaBrame-e2l]

Lewis Donna Robinson Kevin Williams Sharon