Capital Asset Pricing Model

This video discusses the Capital Asset Pricing Model (CAPM).
The Capital Asset Pricing Model can be used to determine the expected rate of return for a security. Here is the formula for the Capital Asset Pricing Model:
Expected Return = Risk-free Rate + Beta * (Expected Market Return - Risk-free Rate)
The expected return of a security is thus a function of: (1) the risk-free rate, (2) the systematic risk of the security (beta), and (3) the market risk premium (the expected market return minus the risk-free rate).-
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[@Valentin-oc5nh]

BEST economics tutor on youtube, by a LOT

[@Edspira]

Thank you!

[@tinwav]

love you, my lecturer over complicates this stuff....

[@kalebsmith3179]

the textbooks love to do that as well

[@shadowwolfxvii4447]

Same

[@tishtosh3]

Your videos have saved me in my accounting and financing classes. THANK YOU!!!!!!!!!

[@arnavdas1671]

Ur literally a blessing sir! Before stumbling upon this channel I was actually really confused abt how to gain more knowledge on finance. I thought I just needed to mindlessly do courses but now I am blessed with this channel😊. Keep up the good work Michael✌️

[@hmmm9658]

Love these tutorials, straight forward, to the point and well explained

[@BrandyMullens]

legit spent an 30 mins trying to understand this with uni content, and youve explained in 4 mins

[@Edspira]

Happy to help!

[@filipstraka1730]

omg thank you so much you've helped me big time with revising for my finance finals... Bless your soul

[@aworldenslaved1235]

Me: clicks like b4 even watching video because edspira has the best explanations out there.

[@saze304]

ur explanations are a form of art

[@braydenbasil7636]

Love your videos. Great work!

[@jordiortega4436]

Thank goodness for this video. Lifesaver! Thx!

[@pitt1939]

Great video! Thank you man, that's exactly what I needed!

[@mohebfaghiri2395]

Nice explanation of CAPM. But, you may also want to talk about the low volatility anomaly here too!

[@hamadaali16]

Keep posting bec Cpa waiting for new more video thank you very much

[@jeremygailmanaois1202]

Thank you sir!!

[@dalalqutt-5143]

Thank you

[@raymondagyenkwa3088]

Great tutorial

[@noahfrederito9560]

Great video!

[@DSIRAGGIE]

THANK YOUUU!!!

[@fatemehkamkar3607]

The best, Thank you

[@Edspira]

Thank you!

[@princessdianahermann9806]

My lecturer should really take notes.

[@lsteven007]

Can you discuss how the risk of pandemics such as COVID-19 fits into the capital assets pricing model?

[@qiaoxinwong9320]

Hi, may i know the Beta in CAPM, can be either BETA ASSET or BETA EQUITY? Is it depends on the cost of equity ( geared or ungeared)?

[@jimcuddy7407]

so the expected return of market is just the average of say daily or weekly return over X years

[@richardsalley9848]

When choosing a "risk free" rate, should the rate be based on how long you expect to hold the security. For example, if I plan to hold the security for at least 10 years, should I used the 10-year treasury rate? Because there is usually a large difference in the treasury rates, say on 3 versus 10 or even 20 or 30 year rates, and this will affect the calculation. And, if I use a 10 year treasury rate, should I also use a Market rate based on a ten year assumption as well?

[@OnceUponADreamersDay]

Good question. I would like to know as well. I expect the use of the rate for a 10-year treasury bill.

[@zzWaiiizz]

honestly the bst!

[@Edspira]

Thank you!

[@Nakameguro97]

Intuitively, what's the difference between CAPM Beta and Beta vs an asset like the S&P? It's a bit confusing because both can be calculated using linear regressions.

[@user-zo8vt5wf2v]

Please, could you me talk what use app for writing this video?

[@nanashipersonne4151]

How the hell do you quantify beta?

[@jackrussel891]

Sorry but which investment risk free give me 1.25% return ?

[@gabe8173]

and how do you determine the "market expected return"

[@marcsmith8]

Typically, it's the expected return from a market index like the S&P 500

[@Cucker_Tarlson56]

Is there not a single person on the face of the planet that can explain how you interpret the CAPM? What are all these videos? Over explaining the easy part but not a single video on an explanation of what the CAPM means in relation to the market.

[@noahfrederito9560]

Great video!

[@Edspira]

Thank you!