Capital market line explained: Tangency and CAPM derivation (Excel)

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  • Опубликовано: 1 дек 2024

Комментарии • 5

  • @NEDLeducation
    @NEDLeducation  2 года назад

    You can find the spreadsheets for this video and some additional materials here: drive.google.com/drive/folders/1sP40IW0p0w5IETCgo464uhDFfdyR6rh7
    Please consider supporting NEDL on Patreon: www.patreon.com/NEDLeducation

  • @bixis5081
    @bixis5081 8 месяцев назад

    Love that you included the equations in the video as well, it makes it way easier to find them in original paper. In some videos I miss it. Great work

  • @StevenThomasKiefer
    @StevenThomasKiefer 8 месяцев назад

    This way of calculation is amazing and although I hold a Master in Finance I never encountered this method. Until now, I always calculated the efficient frontier and tangency portfolio user VBA loops and solver. Could you please tell me where you got this? Is there a scientific paper where this way of calculation was first published?
    Thanks

  • @ferencfuleki9984
    @ferencfuleki9984 2 года назад +1

    Very nice derivation yet again! However. Have you ever tried to calculate this on a rolling Window bases so that you could see how such an optimal portfolio would perform out of sample vs a benchmark? Maybe Dow would be ideal As it has only 30 elements. Also excel may not be the Best platform for such an analysis.
    However it would be a very interesting investigation. What do you think? Would you go for such test?

    • @NEDLeducation
      @NEDLeducation  2 года назад

      Hi Ferenc, and glad you enjoyed the video! I have tried this in the past, this is quite simple conceptually but can be tedious computationally. Generally I feel such a portfolio would not perform particularly well.