CAPM - What is the Capital Asset Pricing Model

[@edit_manger]

I learned more in these 5 mins about CAPM then anything with my investments professor

[@ozandogacerdem8450]

This comment represents me also.

[@lbrandaovieira5]

Outstanding, isn't it?

[@menzoznem]

Professors are there to do their research, not to teach. The level of teaching in my economics faculty is often of so low quality that they should really hire lecturer's that are primarily there to teach and will be replaced if they are badly reviewed. As of now they have a monopoly on their course and have no incentive to improve.

[@paulkwando6419]

I to

[@melissatresler5903]

me too, it's really way better than my text book

[@htoolay6581]

whenever I can't understand in class, I came to youtube. Thank you so much to the people who shared their knowledge generously. A big THANK goes to KZbin as well.

[@LAinLA86]

Its amazing how these videos are so quick, concise, and easy to learn from

[@Potencyfunction]

Why you don t go and read at the library or buy a book and learn because it will save you wasting time for nothing. Good luck with your future investements, go and catch up with people lifestyle.

[@lissiemackintosh]

this video was absolutely brilliant, explained in five mins what my lecturer tried to explain in 5 lectures

[@jessicawiley2814]

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere??

[@achozenshaman]

You give the most thorough and understandable explanations and you include all the little things that everyone else ignores and takes for granted. You're a great teacher! Thank you so much! Subscribed!

[@jessicawiley2814]

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?

[@dendyindramawan6450]

Thank you for the video. The simplest and clearest video about CAPM.

[@WallStreetUniversity]

A great resource for CAPM. One of the foundational concepts of our time.

[@Omnomtoto]

This was so much more concise and clear than my professor who spent 30 minutes talking in circles around this

[@rinkiarora2808]

The video has the most apt clear and detailed explanation of CAPM, you made it so easy Sir. Thank you!

[@everything_is_on_fire3155]

Your approach is really straight nd indept as well. Loved the way you explained it. Waiting for next video.

[@joshuafancher3111]

Thank you! The link between CAPM and a DCF model now makes sense.

[@waseemahmed2567]

I got no words. You explained it in a very neat and a short way. Thanks a ton Sir

[@Leandrasjones]

love the video, definitely not for the beginner beginner as you went over some concepts persons may have to stop and find out more about before continuing, but the level of what you covered in such a short space of time is excellent. Thanks for sharing.

[@abhimanyujaiswal2096]

I watched this video 1st time and in 1st time your content and talking impressed mee.... This 1st time happening with

[@hibadebbar4617]

Your work is still paying off !!! Thank you

[@gigglinghazker]

absolutely amazing!!! so many things shown in really simple and understandable way! even if you’re not native speaker! thanks!

[@oliviazuniga4677]

Loved the quick and easy explanation. Graphics are awesome

[@stephf4175]

just my gosh, who ever came up with all this stuff?!!🤪 but thank you for helping us non-financial folks to try and better understand it all.

[@Samborondon11]

Wow I finally understand that Discount rates can vary depending on the pricing model

[@kakitlau9124]

the explanation in video is!! It's amazing and highly recommended to everyone!

[@wafaaahmed9939]

I appreciate the clear and easy explanation.

[@sidrahbilal3877]

Sir, that was the best explanation, period!

[@HurricaneTrist]

Thanks! Taking my Series 66 tomorrrow

[@davidharte9616]

Love the Boston Accent! I subscribed, helped a lot with my Finance Final!

[@LearntoInvest]

LOL, you picked up on the accent. I try to mask it. and thanks! I'm glad you found it helpful

[@jmc3461]

@@LearntoInvest When you said popular at the end it got real obvious lmao

[@eleanorfulani]

This video really made me want to learn even more. Wish our curriculum was this interesting. Great Job!

[@aWildJersh]

You explain it better than my professor. I am both mad and impressed lol

[@chlarissamaeurbi5957]

Thank you for this! Very helpful! Hoping to pass my exam today 🙏🙏

[@rjamesify]

Good luck to y’all in college hope you guys prosper.

[@semboersen2632]

The MVP himself. Thank you so much!

[@ghaubold35]

Good Vid. I actually became a subscriber because of these investing basics videos. And i look at the stock analysis videos as great add ons to demonstrate how this stuff can be used in real life. Thanks for coming back to the basics.

[@internetdigitalentrepreneu1235]

Excellent - well done. Clear, concise and authoritative!!!

[@jessicawiley2814]

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?

[@lldbaby]

Thanks for sharing your knowledge. The video simple and clear. Very helpful.

[@keithjoshuamassi9785]

So easy to understand. Thanks

[@kristiecarbaugh117]

Very helpful- thank you for explaining this so thoroughly and taking it one step further to explain use case for where to apply knowing CAPM!!

[@samuelchong4085]

Thank you for the detailed explanation!

[@classone9001]

Thanks a ton man. Absolute learning in just 5 mins. Thanks again.

[@moregoldmoresunshine1987]

Wow this was absolutely amazing thank you. Finally understand the bigger picture.

[@mike55mike55mike]

great educational content and stock analysis on this channel - love it

[@johnzarznia6814]

I'm glad you made this video. I looked up CAPM after the BA video. You make it sound so easy. Even though I know its not. Good Video!

[@Rajeshkumar-li2dn]

💯 Wow all the videos are great here, particularly the way of explanation is awesome. My financial thirst ends here. Great work and God bless you. Love from india ❤❤❤

[@quanttube]

You explain things well. Liked it. I'd subscribe to your channel even if you haven't asked for it at the end. It's the quality of the content that persuades people to subscribe, not the request made by the video creators. :)

[@LearntoInvest]

I appreciate that 👍🙂

[@duasanam9150]

So nicely explained

[@bamschilders]

your voice is great. the explanation is great. the examples are awesome, simple but very effective.

[@fredericostuckenbruck2458]

Excelent explanation please make movies on other topics of valuation

[@andyhedges4713]

Love your videos! Great presentation of information. Very clear and informative. Helping me massively along my investing journey. Many Thanks and keep up the great work. 👍👍👍

[@justinrrizzo]

When YT videos are better than my paid Kaplan materials....

[@kyandharmaputrawidodo8036]

Can you make the video about Arbitrage Pricing Theory? I need to presentate next week but i don't know about apt

[@LearntoInvest]

That’s a great idea, let me see if I can get one together fairly quickly for ya 👍😀

[@samiacampbell1792]

Thank you! All the other videos on this are confusing

[@aleras574]

because he is making it too simple... and this is the only thing you probably can understand

[@LearntoInvest]

Is too simple a bad thing? How should I have complicated it to make it better?

[@bigmilt16]

That was clearer than an Ivy League Professor. Hold this sub.

[@LearntoInvest]

What do you think of CAPM? Do you ever use it when valuing a stock? I often use CAPM in my Dow 30 Analysis Video Series kzbin.info/aero/PL7fralS8vIb5jGOwi2dCQ3iYC-AinxRtu

[@danielvillela7272]

A didática é tão boa que consegui assimilar muita coisa mesmo não tendo domínio da língua inglesa.

[@visheshgoyal3999]

i wish my finance professor had seen this video. thank you for your help! finally understood something in this topic xD

[@jessicawiley2814]

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?

[@visheshgoyal3999]

@@jessicawiley2814 seems like you suddenly noticed multiple people. I see you've commented the same thing several times. I will report your comment. Thank you

[@mkingers1]

Perfectly explained thank you!

[@LearntoInvest]

Thanks :)

[@TheSutianneli]

In the end you said discount rate or expected return, are they the same? I know CAPM calculates the expected return of a security..

[@Intothemarket101]

Thank you so much for sharing this useful data ! Greatly appreciated.

[@Ensavoirmoins]

Bêta = Cov (Rm, Ra) / Var (Rm) Just a clarification 🙂

[@slopsloppier5569]

Hi great vid man, 2 questions...where did you get the $1000 dollars from as your expected cash flow? and why would you expect $1000 in 2 years?

[@CleverTOOTH]

Its an example, the expected cash flow can be any number

[@kimie3001]

tq for the video

[@davidcisneros9214]

Thank you for this perfect video! Could you please also make a video explaining the Arbitrage Pricing Theory and the Multifactor Model please? I will have an exam soon about those 3 and I don't understand anything from my investment professor :(

[@jessicawiley2814]

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?

[@albinwiklund4557]

Great video, just one question. What do you do if the risk-free rate is negative? It's about -0,1 where I live, do I plug that in or do I skip that step?

[@afhoadpfhafpaiofhap]

So well explained. love the videos.

[@timothydavis3754]

Just ran into this channel. Great video, I love how you broke down the formula and explained it clearly. I would love a video about arbitrage pricing theory and multi factor models. Thanks!

[@Hayesville-Happy-Feet]

Thanks for explaining Rf & Rm. I’ve been looking for a calculator that would calculate CAPM by just inputting the stock symbol. But using 3% & 9% for Rf & Rm make it easy since all investment sites give the beta of a stock.

[@Potencyfunction]

🤣 Yu use calucator at that level of calcul ? 🤣 Are you coming from Paleonthogic era or mezozioc era ?

[@ArtHoward]

This is the first one of your animated videos I've seen. This format works perfectly for you. The script and your narration read are right on. In the "live" videos I could sense your nerves, but this format lets you relax and get your ideas across.

[@jessicawiley2814]

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?

[@biglebowsky1988]

is there a video about the arbitrage pricing theory ?

[@abrahamgomez653]

The 10 year goes up than that means the ER goes up which means cash is discounted higher. Which means its riskier but the dollars are discounted higher.

[@aakashtiwari2472]

Short and crisp!

[@JosueLopez-jx1th]

Wonderful explanation ! Thanks !

[@jessicawiley2814]

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?

[@ericdelvalle2056]

great explanation. if only my professor knew how to explain.

[@mandarnandre7387]

Thank you!! ( Imagine I said it in Boston Accent) Please make a video for using CAPM for portfolio.

[@jessicawiley2814]

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere??

[@dhavalpatel9578]

Please also explains APT & Multi factor theory.

[@KamalTaybi-jd9fh]

Can you do an explanation of DCF model for your next video? thank you.

[@LearntoInvest]

Good one. I'll see if I can get that one done by next week. Thanks for the suggestion.

[@nicoanastasio3141]

great video, not sure where you take the $1000 from the second calculation from?

[@jessicawiley2814]

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?

[@AhmadAmr98]

dude im clapping youre just awesome thank you

[@LearntoInvest]

Thanks 👍👍😁

[@salao000]

Sorry for my ignorance. But how did you go from 8.94% as the result of the CAPM to 1.0894^2. Thanks for this great videos.

[@Andrea-sl1xv]

up

[@neelmdchy]

Well, 8.94%=0.0894 Here, (1+0.0894) = 1.0894 And the to the power 2 is the "Year of cashflow" Thus, 1.0894^2 Hope it helped

[@willfindjr]

Another great video!! excellent level of detail and useful examples.

[@jessicawiley2814]

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere??

[@mysteriousanalyst3598]

Can you apply CAPM on ETF’s not just individual stocks?

[@alemberhe5952]

thank u very much short and clear

[@JakeDoesMusicSometimes]

This is an extremely well done video geez thank you

[@rifatbaranayarci4115]

Only helpful and useful stuff. Thank you!!

[@strategicactionservices2206]

When did we start using the 10 year note for the Rf? I thought short-term treasuries were used for the Rf.

[@adityakulshrestha16]

Great video sir

[@loyaranha]

Thank you so much for your efforts with making these, Could you do one on the Fama and French 5 factor model?

[@MrMineHeads.]

You could just look it up. It adds four more factors, one called SMB (small minus big) which is the risk of a company for being "small" (i.e. low market cap ~1B or lower), one called HML (high minus low) which is the risk of a company being "cheap" (high book/price vs low book/price), one is called RMW (robust minus weak) which is (counterintuitively) the risk profitable companies have, and finally one for CMA (conservative minus aggressive) which is the risk that firms that invest conservatively have. All these are tremendously difficult to calculate accurately individually, but the market as an aggregate of millions of investors gets those risks spot on in the long run most of the time (>95%).

[@jessicawiley2814]

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere??

[@carlosgomez-gc2is]

you need a patreon account dude. Good job as always!

[@tubarao1143]

Really nice video! Asa question, shouldn't "expected return of the market" be the % change in the respective industry and not in the overall market? By using 9% we are considering that oil industry will grow as fast as 5G companies?

[@Jintianchiyu]

核心：用市场来估公司，但R某公司不等于R整个市场（公式就是利用贝塔系数根据股票表现相关性/一致性来调整这个差距的）

[@196nagahori9]

Thank you for this great content! Love from japan

[@nicholasdranfile9312]

I love your voice. also superb video explanation

[@Nz-randy17]

sorry, can you explain the part which is 1,000/1.0894^ or in my perception 1,000/1+capm^. What formula is it or how to understand it? Thank you

[@SurajP16]

thanks, it was really helpful

[@nikgreek3774]

Good evening everyone,i am new at the investing almost 1 month that I study from youtube videos and some books that I bought.I know some things about P/E ratio and dividends and EPS but things like this I don't understand it,i have subscribed in the simple wall street website cause I think it gives you a lot of information about stocks.Can u suggest me how should I start and put everything in order? Sir I respect you a lot from your videos and an answer from you would really help me.Thank you and I wait for a little help

[@UmTheMuse]

Does it ever make sense to customize the risk-free rate for our particular situation? For example, if you're in debt and the interest rate is higher than the yield for 10-year bonds?

[@LearntoInvest]

I wouldn't customize the risk free rate since the goal of CAPM is essentially to calculate the cost of equity. And we use the risk free rate to give us a baseline... Assuming we are using CAPM to help calculate our required rate of return, we take this CAPM calculation and apply it to a WACC calculation kzbin.info/www/bejne/ZprRoqpvmKh9pK8 that is where we can make adjustments for debt and the cost of that debt. Hopefully this helped :)

[@gauravmohan9271]

Thanks..very informative

[@stranglesensei]

very helpful

[@srirang.iyengar7005]

thank you

[@gatraaaaa99]

got it, thanks!

[@agentapat]

for real saving my final grade

[@jessicawiley2814]

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?

[@buhle6407]

Perfect!!. Thank you

[@ulviaslanli6477]

Hi,can you solve it please If you have a portfolio with a market value of $ 100 million and a beta (measured against the S&P 500) of 1.5, then if the market rises by 10 percent, what value would you expect your portfolio to have

[@jessicawiley2814]

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?

[@maddmotorz6252]

Im getting .03+.99(.09-.03)=.0612 we multiply the sum in parenthesis by 1.02 right?

[@gniginny197]

Thanks! It's helpful!

[@LearntoInvest]

I'm glad you liked it!!!!