For anyone wondering what the the CML equation is, it's E(Rp)=Rf+SRm*Sp Where SRm=[E(Rm)-Rf]/Sm is the market's Sharpe ratio and Sp is the portfolio's standard deviation. I think the difference is more clear when you look at the equations.
Who ever you are thank you so much for explaining the constants in CAPM and the beta for not being constant. This would have taken me days to read about it in coursebooks.
Finance has lots of risk factors attached to it and the reason most people struggle financially is because they find it difficult to be able to ascertain a good plan for themselves while trying to start up stuffs like investing in forex and the stock market you need to at least get started under the directives of an authorized expert
Brooks Godfrey It takes years of practice to master the forex market but that doesn’t mean there aren’t people who earn money from the foreign exchange market without knowing how to trade
Actually, that whole thing IS actually the risk premium of the security. She explains further starting at 5:30. The market risk premium is simply Rm - Rf, but when you multiply that result by beta, you get the risk premium for the specific asset in question.
Hi, I want to ask you a question "The only difference between the CML and SML is that CML risk risk is measured using the sd while SML risk is measured using the beta" I know this is true but is there anything else? Thanks!
thank you so much for your effort . and i have question because i didn't understand why the Market Return shouldn't change is it because it has unchange Beta ?
yes it does change, just like free risk return. the thing is if you see the whole market as a whole, the market return is a fix number in a certain point of time. and if you put the beta as 1, of course, the return of your portfolio is equal to the market return.
umm only thing understood is the sml uses only beta and cml uses total risk. now cml is for market portfolio and sml is rather for one single stock. i know all this and I'm wondering how to simply distinguish both. can someone help me? if possible also includes cal.
No you are wrong ..!! This is not the perfect difference b/w cml and sml CAPM is not just a formula.. Its a beautiful concept. Please learn it in right way.
In the US, rf is usually determined by the treasury...not bank of Canada. FYI. Also, you pronounce portfolio weird...thought you were saying petroleum. lol. I'd like more comparisons on why SML is different than CML...not the CAPM formula broken down. I still don't know the difference between the two other than sigma vs B.
@D no i don't think she is teasing us. The company Research In Motion (NASDAQ:RIMM)(TSX:RIM) changed its name to BlackBerry (NASDAQ:BBRY)(TSX:BB), then changed to (NYSE: BB)
I love how all the videos on this channel only have a couple hundred, maybe a couple thousand views, but her videos have 100k or 200k+ views, and the comment sections are full of nothing but sexual harassment haha. Not condoning it, but it is a bit hilarious.
thats it fellas, im in love
Who isn't..😬
There should be more teachers like this it would help lol
If I had her a professor I'd probably pay attention more in class😂
This was such a bright spot in my CFA studies.
if you're attempting a CFA and you don't know about CAPM models. You. Are. Fucked.
@@zacbouch42 not really.
Just basic shet that any business grad should already know. Also, meaningless in the real world. But whatever.
Now I understand why my mom said studying can be rewarding
For anyone wondering what the the CML equation is, it's E(Rp)=Rf+SRm*Sp
Where SRm=[E(Rm)-Rf]/Sm is the market's Sharpe ratio and Sp is the portfolio's standard deviation. I think the difference is more clear when you look at the equations.
Damnnnn! More like fiance than finance.
Al Shey ha ha ha!
XD XD XD XD XD XD
Who said finance is not sexy enough
married
@@MrArthurku
Do u know her?
Who ever you are thank you so much for explaining the constants in CAPM and the beta for not being constant. This would have taken me days to read about it in coursebooks.
I already knew what the comments were gonna say before I clicked the video
So yeah, I'm graduating this Thursday with a bachelors in Finance from the University of Houston. All thanks to this beautiful lady 2 years ago.
you lucky bastard
You should propose to her
Chisolhm was your profesor?
Is this some kind of incentive for me to pass the CFA exam? Because it's working!!!
How was the result 😂
@@Cheesecake99YearsAgo I'm also curious to know!
Omg she is gorgeous!
Yes yes. I get it now.
Who knew physics would be so simple.
Make Finance Great Again
Donald Trump voice 😂😂😂👍
Exactly what i needed before my strategic management test..... thanks a ton!!!
damn ,I can't really focus
"And you have to remember this"
:Yes sir ma'am.
Nicely done! Your explanation really helped me with the risk premium part of the formula. Thanks!
Just awesome ...my finance prof couldn´t explain it as good as you did
Focus....focus....c'mon, focus
Finance has lots of risk factors attached to it and the reason most people struggle financially is because they find it difficult to be able to ascertain a good plan for themselves while trying to start up stuffs like investing in forex and the stock market you need to at least get started under the directives of an authorized expert
Intellectual Mom You made a great point
I have tried trading forex for 3 weeks now and I occasionally lose I don’t just know how people who earn from forex do that stuff
Trading forex is lots of risk that’s why you need to know how it works before investing and that might take a pretty much time
Brooks Godfrey It takes years of practice to master the forex market but that doesn’t mean there aren’t people who earn money from the foreign exchange market without knowing how to trade
How can I make money from forex without knowing how to trade forex
What’s her name, I need to ask more questions about the CAPM? :)
If any one of my Finance professors looked like this, I’d have taken the class several times.
Thank you. Simple and short. Wonderfully explained!
My attendance record will be perfect for this class.
So good explanation mam. Thanks for make so easily and understandable video. I really appreciate you 😊
Hello Fiance! :D I mean Finance*
5 seconds into the video and I'm still concentrating on the face. Damn!
I promise I'll ace my finance exam if you become my lecturer!
watched this video 5 times, grade saver here
FUCK. I am in love. U are so pretty
At 3:30, the whole thing ß(Rm - Rf) that you say, is not Risk premium. But you correct right away, so it's not a big deal anyway.
Actually, that whole thing IS actually the risk premium of the security. She explains further starting at 5:30. The market risk premium is simply Rm - Rf, but when you multiply that result by beta, you get the risk premium for the specific asset in question.
Thank you, an excellently explained video.
Excellent explanation... Thank you the way you cleared the differences between CML & SML is awesome...thumbs up
beautiful and intelligent
Awesome video!!! Thank you pretty teacher!
Damn i missed it before IPM
Hi, I want to ask you a question "The only difference between the CML and SML is that CML risk risk is measured using the sd while SML risk is measured using the beta" I know this is true but is there anything else? Thanks!
Did you ever figure it out?
The best video i have never seen before , wonderful!!! thanks indeed....
It was great- It won't confuse me again CML vs SML
ok, all jokes aside, and I am very tempted to joke, but, she explained this so well that I finally understand it.
very clear, I love the explanation, thank you very much!
Good teaching, and pretty too.. Loved the video.. :)
:) (^_^)
thank you so much for your effort . and i have question because i didn't understand why the Market Return shouldn't change is it because it has unchange Beta ?
yes it does change, just like free risk return. the thing is if you see the whole market as a whole, the market return is a fix number in a certain point of time. and if you put the beta as 1, of course, the return of your portfolio is equal to the market return.
hank you so much
As soon as she mentioned RIM, I had to check the timestamp!
I never had such focus in my life ever
Subscribed in the hope that there's more CFA related content on the channel. *fingers crossed*
Thank you so much! This is very informative and clear thought video, which indeed helped me a lot!!
Thank you so much! You explained very well. Now I unterstand it 😊
I don't know what I came to do here but I found love
Pretty clear about the SML but how about difference with CML, did not get it
Same here! :S
:(
Don't disturb her :P
SML is comparing expected returns with market risk (Beta) while CML compares expected returns with total risk (standard deviation).
Nice!
I love physics and the linear lines and stuff!
Do you have videos on CAPM and index model?
Which are the hypotetical assumptions that could lead to a SML = CML?
nice , good & pretty approach by faculty
Can the risk free rate? Start from negative aswell like in the case of Japanese Model?
..... you dont even explain the models :/ i dont know like why do we use the beta etc
umm only thing understood is the sml uses only beta and cml uses total risk. now cml is for market portfolio and sml is rather for one single stock. i know all this and I'm wondering how to simply distinguish both. can someone help me? if possible also includes cal.
Very clearly taught. Thanks a lot
Feel motivated to learn more after this. Explained simply though not throughly and buy beutyfull girl. I am pumped to wokr harder! :D
Thank you! This video helps me clear my understanding and I also I find you very attractive.
No you are wrong ..!!
This is not the perfect difference b/w cml and sml
CAPM is not just a formula.. Its a beautiful concept.
Please learn it in right way.
holy hotness!!
What is the name of the teacher? She is really good, i am wondering if she has more videos on youtube?
+cooartyp yeah me too.... for science...
Very good job. Thank you.
In the US, rf is usually determined by the treasury...not bank of Canada. FYI.
Also, you pronounce portfolio weird...thought you were saying petroleum. lol.
I'd like more comparisons on why SML is different than CML...not the CAPM formula broken down. I still don't know the difference between the two other than sigma vs B.
Awesome! Great video!
You make me focus ! thanks !
I love teaching with teacher
Do you provide personal classes?
Feeling happy after studying.
And yet very informative
Right about now my CAPM is all out of WACC ;)
I would hire her just to watch her deliver the same lesson each day
Very nicely presented:) this helped me a lot. thank u:)
Would never have a 'rise' problem in a graph after seeing this video.
intelligence is not a depreciating asset
i think you stole something from me, my heart
very nicely explained. thank you! hope these comments aren't the reason for you not making more videos.
Omg, she is beautiful and has a brain.
Why aint all women like her... :D
True bro, your mom is an ugly dumbass.
@@arpitshukla8751 😂😅
True
thanks so much. this saved me
she's pretty ...and so smart...D: ...
I like you more than CAPM!
Very helpful, thank you!
Great explanation.
I just found a cure for ADD...HOT teachers lol
Thank u so much ma'am!! Ragards from "INDIA".
MA'AM, you should make video on APT ( Arbitrage Pricing Thery) ..
6:33 "Google or RIMM"... what is RIMM?
@D no i don't think she is teasing us. The company Research In Motion (NASDAQ:RIMM)(TSX:RIM) changed its name to BlackBerry (NASDAQ:BBRY)(TSX:BB), then changed to (NYSE: BB)
I love how all the videos on this channel only have a couple hundred, maybe a couple thousand views, but her videos have 100k or 200k+ views, and the comment sections are full of nothing but sexual harassment haha. Not condoning it, but it is a bit hilarious.
10/10, and the video as well....
Thanks alot now i got a broad idea about it
nicely explained thanks..
Thank you!!!
very helpful thanks
oooohhhhh I JUST DIED IN YOUR ARMS TONIGHT btw we use treynor ratio SML not sharpe
Can we say beta is Var i.e value at risk here
You've saved me ! Thanks !
How am I supposed to concentrate with her as a lecturer XD
god she is so cute
@ 5:35 - it's actually "Equity risk premium" to be more precise, not just risk premium.
gosh, she's well prepared :))
Gr8 video..thanks