Find Flashcards
Why It Works
More
Educators
Businesses
Academy
About

Brainscape's Knowledge Genome^TM

Browse over 1 million classes created by top students, professors, publishers, and experts.

Entrance Exams
Professional Certifications
Foreign Languages
Medical & Nursing
Science
English
Humanities & Social Studies
Mathematics
Law
Vocations
Health & Fitness
Business & Finance
Technology & Engineering
Food & Beverage
Fine Arts
Random Knowledge

See full index

L1 44 Portfolio Risk and Return: Part II > h describe and demonstrate applications of the CAPM and the SML. > Flashcards

h describe and demonstrate applications of the CAPM and the SML. Flashcards

L1 44 Portfolio Risk and Return: Part II (8 decks)

a describe the implications of combining a risk-free asset with a portfolio of risky assets;

b explain the capital allocation line (CAL) and the capital market line (CML);

c explain systematic and nonsystematic risk, including why an investor should not expect to receive additional return for bearing nonsystematic risk;

d explain return generating models (including the market model) and their uses;

e calculate and interpret beta;

f explain the capital asset pricing model (CAPM), including its assumptions, and the security market line (SML);

g calculate and interpret the expected return of an asset using the CAPM;

h describe and demonstrate applications of the CAPM and the SML.

Key Links
Subjects
Company
- About Us
- Earn Money!
- Academy
- Swag Shop
- Contact
- Terms
- Podcasts
Find Us

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions