Podcasts about Capital asset pricing model

In this episode, Sev talks about many of major areas within the Investments module that could be tested on the CFP® exam. Topics such as stocks, bonds, options, mutual funds and ETFs are discussed, along with their tax implications. Methods of measuring a portfolio manager's investment performance such as the Treynor ratio and Jensen's alpha are discussed, along with Modern Portfolio Theory, the Capital Asset Pricing Model, and many other related topics. ____________________________________________ About Sev Meneshian

Firms hope to get money for their investment decisions from investors. The latest haveto decide how to maximize the returns they get while simultaneously minimizing their risk. This lecture will introduce two key concepts of financial management: Portfolio Theory and Capital Asset Pricing Model and will discuss how the CAPM gives us one of the inputs for NPV, the discount rate.This lecture was recorded by Raghavendra Rau on 13 November 2023 at Barnard's Inn Hall, LondonThe transcript and downloadable versions of the lecture are available from the Gresham College website:https://www.gresham.ac.uk/watch-now/Gresham College has offered free public lectures for over 400 years, thanks to the generosity of our supporters. There are currently over 2,500 lectures free to access. We believe that everyone should have the opportunity to learn from some of the greatest minds. To support Gresham's mission, please consider making a donation: https://gresham.ac.uk/support/Website:  https://gresham.ac.ukTwitter:  https://twitter.com/greshamcollegeFacebook: https://facebook.com/greshamcollegeInstagram: https://instagram.com/greshamcollegeSupport the show

During Preston Pysh's discussion with Allen Farrington, Allen provides critical thought experiments and challenges to many of the ideas that plague Wall Street and business schools.IN THIS EPISODE, YOU'LL LEARN:00:00 - Intro04:56 - What does the UFC have to do with economics and money?08:28 - The Efficient Market Hypothesis.19:18 - Is risk volatility?19:18 - The Capital Asset Pricing Model.31:10 - This is NOT capitalism.34:49 - The flaws in using GDP.44:21 - Thoughts on Bitcoin and derivative markets.44:21 - The societal implications of Bitcoin and beyond it's economic value.BOOKS AND RESOURCESAllen Farrington's Twitter.Allen's Website.Allen's book, Bitcoin is Venice.NEW TO THE SHOW?Check out our We Study Billionaires Starter Packs.Browse through all our episodes (complete with transcripts) here.Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.Enjoy exclusive perks from our favorite Apps and Services.Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.Learn how to better start, manage, and grow your business with the best business podcasts.Help us understand our audience better so we can create a more intentional user experience by answering this survey!SPONSORSInvest in Bitcoin with confidence. Get $5 in Bitcoin when you invest $100 with River.Invest in some of the top private, pre-IPO companies in the world with Fundrise.Reach the world's largest audience with Linkedin, the place to B2B. Plus, enjoy a $100 credit on your next ad campaign!Learn how Principal Financial can help you find the right benefits and retirement plan for your team today.Experience real language learning for real conversations with Babbel. Get 55% off your Babbel subscription today.Beat FOMO and move faster than the market with AlphaSense.Choose Toyota for your next vehicle - SUVs that are known for their reliability and longevity, making them a great investment. Plus, Toyotas now have more advanced technology than ever before, maximizing that investment with a comfortable and connected drive.Be confident that you'll be small businessing at your best with support designed to help you reach your goals. Book an appointment with a TD Small Business Specialist today.Get a customized solution for all of your KPIs in one efficient system with one source of truth. Download NetSuite's popular KPI Checklist, designed to give you consistently excellent performance for free.Start, run, and grow your business without the struggle. Be in control of every sales channel with Shopify. Sign up for a $1 per month trial period today.Reach the world's largest audience with Linkedin, the place to B2B. Plus, enjoy a $100 credit on your next ad campaign!Send, spend, and receive money around the world easily with Wise.Feed your body the nutrients it craves with Ka'Chava, an all-in-one, plant-based superblend made up of superfoods, greens, plant proteins, antioxidants, adaptogens, and probiotics! Get 10% off on your first order today!Support our free podcast by supporting our sponsors.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

William F. Sharpe is the STANCO 25 Professor of Finance, Emeritus at Stanford University's Graduate School of Business. He was one of the originators of the Capital Asset Pricing Model, developed the Sharpe Ratio for investment performance analysis, and has published articles in a number of professional journals. In 1990, he received the Nobel Prize in Economic Sciences. This episode of the podcast is hosted by Jon Luskin, CFP®, a long-time Boglehead and financial planner. The Bogleheads are a group of like-minded individual investors who follow the general investment and business beliefs of John C. Bogle, founder and former CEO of the Vanguard Group. It is a conflict-free community where individual investors reach out and provide education, assistance, and relevant information to other investors of all experience levels at no cost. The organization supports a free forum at Bogleheads.org, and the wiki site is Bogleheads® wiki.    Since 2000, the Bogleheads' have held national conferences in major cities around the country. There are also many Local Chapters in the US and even a few Foreign Chapters that meet regularly. New Chapters are being added on a regular basis. All Bogleheads activities are coordinated by volunteers who contribute their time and talent.     This podcast is supported by the John C. Bogle Center for Financial Literacy, a non-profit organization approved by the IRS as a 501(c)(3) public charity on February 6, 2012. Your tax-deductible donation to the Bogle Center is appreciated. Show Notes Exploring the Retirement Consumption Puzzle (Retiree Spending Smile) Bogleheads® Live with David Blanchett: Episode 14 The Arithmetic of Active Management Bogleheads® Live: Episode 1 - Investing Internationally (clip) Submit questions for Jonathan Clements 2023 Conference - The John C. Bogle Center for Financial Literacy John C. Bogle Center for Financial Literacy Bogleheads® Forum Bogleheads® Wiki Bogleheads® Reddit Bogleheads® Facebook Bogleheads® LinkedIn Bogleheads® Twitter Bogleheads® on Investing podcast Bogleheads® YouTube  Bogleheads® Local Chapters Bogleheads® Virtual Online Chapters Bogleheads® on Investing Podcast Bogleheads® Conferences Bogleheads® Books The John C. Bogle Center for Financial Literacy is a 501(c)3 nonprofit organization. At Boglecenter.net, your tax-deductible donations are greatly appreciated. 

Every investment comes with a certain degree of risk, attached to it. For example, the fixed deposits may see a decline in interest rates, real estate might lose value, or the stocks purchased might witness capital erosion. The additional income or the rate of return earned from an investment compensates an investor for the risk he undertakes. That is, the higher the risk, the higher the return the stock has to pay back, to become a rational investment. So, it can be understood that the concept of risk and return go hand in hand. Let's discuss Capital Asset Pricing Model. To read, go to link : https://www.elearnmarkets.com/blog/capital-asset-pricing-model-capm/

Asset pricing models have evolved significantly over the past several decades. From the Capital Asset Pricing Model to Fama and French's 3 Factor Model to their more recent 5 and 6 Factor Models, academic research has continued to work to improve our understanding of what drives stock prices. But our guest this week thinks asset pricing models might need a revolution more than evolution. We speak with Lu Zhang, who is the John W. Galbreath Chair and Professor of Finance at the Fisher College of Business at Ohio State University. He is also the creator of the Q factor model, which takes a first principles approach to asset pricing that starts with economic theory rather than adopting the framework of previous models. We discuss the evolution of asset pricing models over time and take a detailed look at the major models that have come along the way. We then look at the philosophical arguments for why traditional asset pricing models may be taking the wrong approach and look at the details of the Q factor model. We hope you enjoy the discussion. ABOUT THE PODCAST Excess Returns is an investing podcast hosted by Jack Forehand (@practicalquant) and Justin Carbonneau (@jjcarbonneau), partners at Validea. Justin and Jack discuss a wide range of investing topics including factor investing, value investing, momentum investing, multi-factor investing, trend following, market valuation and more with the goal of helping those who watch and listen become better long term investors. SEE LATEST EPISODES https://www.validea.com/excess-returns-podcast FIND OUT MORE ABOUT VALIDEA https://www.validea.com FOLLOW OUR BLOG https://blog.validea.com FIND OUT MORE ABOUT VALIDEA CAPITAL https://www.valideacapital.com FOLLOW JACK Twitter: https://twitter.com/practicalquant LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094 FOLLOW JUSTIN Twitter: https://twitter.com/jjcarbonneau LinkedIn: https://www.linkedin.com/in/jcarbonneau

With anything in the world of finance, there is always a mathematical explanation and an intuitive explanation. The fact that the market is structured to drift higher over time is no exception to this rule. From the Geometric Brownian Motion foundation all the way to the Capital Asset Pricing Model, today we learn the fundamental reason for the market's slow drift higher over time - supply and demand.

With anything in the world of finance, there is always a mathematical explanation and an intuitive explanation. The fact that the market is structured to drift higher over time is no exception to this rule. From the Geometric Brownian Motion foundation all the way to the Capital Asset Pricing Model, today we learn the fundamental reason for the market's slow drift higher over time - supply and demand.

The Capital Asset Pricing Model, or CAPM, is a widley taught asset valuation model, so you have to kow what it is. Let talk about it!

On Episode 3 of the Best Interest Podcast, we discuss personal finance unknowns. Sudden expenses, 'black swans,' and what we can do to save ourselves from trouble.  https://bestinterest.blog/personal-finance-unknowns/ I also answer an interesting question about CAPM--the Capital Asset Pricing Model. Cool stuff! 

In episode 279 of Financially Simple, Justin talks to Chris Steward about Factor Investing. Is there a good way to invest, or is it down to luck and the markets? Justin and Chris discuss Factor Investing, what it is, and how best to approach it as a small business owner. Don’t forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening! _________________   TIME INDEX: 01:29 - What is Factor Investing and why do so many use this Strategy? 02:44 - What is a Factor? 04:10 - What is Market Cap? 05:15 - The Capital Asset Pricing Model 09:15 - Small Caps 13:05 - Value Investing 14:51 - Is Three-factor Modeling Still Relevant? 17:16 - The Five-Factor Model: Profitability 19:42 - What is Good Investing? 23:04 - Wrap Up   RESOURCES: Chris Steward, CFA, CFP Financially Simple Educational Website Financially Simple on YouTube Financially Simple podcasts are recorded on a Blue Yeti Microphone & Samsung Notebook 9. Subscribe to the Financially Simple Newsletter Ask Justin a Question NEW Book: The Ultimate Sale - A Financially Simple Guide to Selling Your Business for Maximum Profit _________________   BIO: Host Justin Goodbread, Certified Financial Planner, Certified Exit Planning Advisor, Certified Value Growth Advisor. He is a serial entrepreneur, author, speaker, educator, Investopedia Top 100 advisor, and business strategist with over 20 years of experience. Justin owns Heritage Investors LLC, a registered investment adviser with the State of Tennessee. Heritage Investors only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. This material is for general information only and is not intended to provide specific advice or recommendations for individuals. To determine what is appropriate for you, please consult a qualified professional. The Financially Simple podcast provides information, guidance, and support to Small Businesses in the United States.

In finance, beta measures a stock’s volatility with respect to the overall market. It is used in many areas of financial analysis and investment, for example in the calculation of the Weighted Average Cost of Capital, in the Capital Asset Pricing Model and market-neutral trading. In this post, we present a concrete example of calculating the beta of Facebook, a technology stock. As for the market benchmark, we utilize SPY. http://tech.harbourfronts.com/trading/stock-beta-calculate-stock-beta-python/

When we asked international technology entrepreneur Paul Tenney about the pre-requisites to entrepreneurial business success, he said, “Learn accounting”. Accounting — or economic calculation — is one of the four pillars of entrepreneurship. And when it's viewed through Austrian eyes, it becomes a more powerful business tool than, perhaps, you might have realized. Whether we are talking about retrospective accounting (P&L accounting and financial reporting) or commercial pre-calculation to plan future actions (management accounting or cost accounting), how you use the tool makes a difference to the results you get. Our guest in E4E episode 51, Dr. David Rapp, is an international leader in the field of Accounting and Management Control, a subject he teaches at one of Europe's top business schools. Key Takeaways and Actionable Insights Accounting is a means to help you achieve your desired ends — apply judgment when using the tool. Austrian economics teaches us to subjectively choose goals and then select the best means to achieve those goals. Accounting is just another tool to help the entrepreneur. There are plenty of explicit and implicit options in how to use it. David calls this attitude “purpose orientation” — one of the most important aspects in the field of accounting. Any computation should be shaped by its underlying purpose. Financial reporting is subject to local rules — but there are always options in applying them. If the purpose is to pay as little tax as possible, for example, a firm may apply depreciation or amortization rules in such a way as to reduce taxable profits. If the purpose is to present the firm in the best possible light to secure external funding, the same rules might be applied in a different way to display a different calculation of profit. There are options available for valuation of assets and of inventory that can materially affect the balance sheet. Entrepreneurs should be rigorous in ensuring that their own managerial accounting does not mislead them. Some modern finance theories and models are unrealistic — such as the standardized Capital Asset Pricing Model and the Weighted Average Cost of Capital approach. The entrepreneur's task is to apply real world judgement in deciding on future actions. Austrian Economics guides us towards realism not models, and the insights from Austrian Economics are the best ones to integrate into managerial accounting. Entrepreneurs should bear in mind core Austrian Economics principles to guide their options in accounting. Dr. Rapp mentioned these principles: Subjective valueThe importance of opportunity costsDistinguishing between value and priceUnderstanding that prices determine costs rather than vice versa,Differentiating between uncertainty and risk Does accounting send reliable signals of business health to the entrepreneur? Not necessarily. Entrepreneurs should be on their guard. Dr. Rapp advises us that general guidance to the firm's owners and management is not possible via accounting. Accounting is not neutral and not a perfect tool for measurement or reporting. Again, the choice of reports comes down to the goal the entrepreneur is pursuing. If the goal is a sale to an external buyer, then an accounting focus on EBIT might be the best channel for the most relevant business health monitoring. If the goal is external financing from a bank, a more appropriate signal might be found in a solvency measure such as debt-to-equity ratio. Can accounting accommodate the Austrian Economics mandate for dynamic flexibility — continuous adjustment to changing customer preferences in the marketplace? Yes, says Dr Rapp: by emphasizing the P&L to reflect the profit-and-loss outcomes of entrepreneurial actions and to reflect how well changing allocation of resources serves customers. Sub-dividing accounts into shorter time periods and different lines of business can more accurately reflect the dynamism of a business. And extensive use of notes to accounts in reports can provide a qualitative flexibility in reporting. Accounting plays a primary and noble role in the advance of civilization. Our complex market economy could not have evolved without accounting. It's an important part of the system that allocated capital to its highest and most profitable use. Accounting is not boring, dry or dispensable. Rather, it's a mainstay of human progress. Additional Resource "Accounting From An Austrian (Misesian) Perspective" (PDF): Mises.org/E4E_51_PDF

Today we have a solo episode, where Grant shares his thoughts on an array of investment products that have come to market over the last decade. Grant covers index funds, smart beta, factor investing, and shares his favorite investment strategies for 2020. The product options investors have available to them have grown dramatically over the last decade. We now have thousands of mutual funds and exchange traded funds available at very little cost, and in today’s episode Grant discusses some of these newer investment options. Focusing on Smart Beta Funds, Grant explains how they can contribute to positive investment returns when deployed thoughtfully. And towards the end of the episode Grant shares a few of his favorite investment strategies for 2020.    [01:29] History of Index Investing – Grant briefly walks you through the early days of index investment and how the Capital Asset Pricing Model was developed. [03:52] Alpha Versus Beta – Grant talks about the main differences between the two investment strategies. [08:03] Which one performs better? – Grant explains how one of these strategies outperform the other in terms of producing consistently positive returns. [11:46] Smart Beta Funds - Special features of Smart Beta Funds (Factor Funds) and why there’s been a lot of headlines about them. [13:35] S&P 500 and Market Capitalization – Before getting deep into smart beta funds, Grant gives a brief explanation of how the market capitalization and S&P 500 index works. [15:28] Value & Growth – Grant talks about how value and growth come into play in terms of categorizing stocks. [20:08] How value stocks favor beta portfolios – Grant explains the reasons behind the recent popularity of smart beta funds and how it connects to the value and growth spectrum. [25:32] Factors involved in Smart Beta Funds – Grant talks about what factors are considered to weight stocks when it comes to smart beta funds and what are the factors actually work. [29:19] Current market trends – Grant’s tale on how the market behaved since the last financial crisis and what might happen in case of another recession or a massive market correction. [34:45] Investment strategies for 2020 – Grant shares his top tips on what to consider when planning your investment strategy in the year 2020.   Resources: Index fund basics: investor.gov Smart Beta Funds: investor.gov Capital Asset Pricing Model: psc.ky.gov S&P 500 Index: investopedia.com Market Capitalization: investopedia.com

El Modelo de Valoración del Precio de los Activos Financieros o Capital Asset Pricing Model (conocido como modelo CAPM) es una de las herramientas más utilizadas en el área financiera para determinar la tasa de retorno requerida para un cierto activo. En la concepción de este modelo trabajaron en forma simultánea, pero separadamente, tres economistas principales: William Sharpe, John Lintner y Jan Mossin, cuyas investigaciones fueron publicadas en diferentes revistas especializadas entre 1964 y 1966. Música: Hans Atom - Independence Day

What lead to the Capital Asset Pricing Model? notes:https://helpified.com/paths/capm-the-capital-asset-pricing-model

Michael Covel speaks with Justin Fox. Fox is the executive editor at the Harvard Business Review Group. He writes a blog for hbr.org (http://blogs.hbr.org/fox/) and a monthly column for Time magazine. Fox is also the author of "The Myth Of The Rational Market: A History of Risk, Reward, and Delusion on Wall Street". Covel and Fox discuss Harry Markowitz, Bayesian statistics, and making smart decisions in an uncertain world using quantitative tools; stocks, beta, and the importance of making useful predictions; Commodities Corporation and trend following trading in the early 1970’s; why a market in which everyone was rationally anticipating the future would be a random market; Amos Hostetter; how the behavioral mindset started to unfold in the 1970’s; Eugene Fama and the efficient market hypothesis; the Capital Asset Pricing Model; why well-designed markets and well-informed investors are prone to manias and panics; and individuals making errors vs. the group getting it right. Justin Fox can be found on Twitter at @foxjust or on the web at byjustinfox.com.

In this lecture, Professor Shiller introduces mean-variance portfolio analysis, as originally outlined by Harry Markowitz, and the capital asset pricing model (CAPM) that has been the cornerstone of modern financial theory. Professor Shiller commences with the history of the first publicly traded company, The United East India Company, founded in 1602. Incorporating also the more recent history of stock markets all over the world, he elaborates on the puzzling size of the equity premium. very high historical return of stock market investments. After introducing the notion of an Efficient Portfolio Frontier, he covers the concept of the Tangency Portfolio, which leads him to the Mutual Fund Theorem. Finally, the consideration of equilibrium in the stock market leads him to the Capital Asset Pricing Model, which emphasizes market risk as the determinant of a stock’s return. Complete course materials are available at the Open Yale Courses website: http://oyc.yale.edu This course was recorded in Spring 2011.

This lecture continues the analysis of the Capital Asset Pricing Model, building up to two key results. One, the Mutual Fund Theorem proved by Tobin, describes the optimal portfolios for agents in the economy. It turns out that every investor should try to maximize the Sharpe ratio of his portfolio, and this is achieved by a combination of money in the bank and money invested in the "market" basket of all existing assets. The market basket can be thought of as one giant index fund or mutual fund. This theorem precisely defines optimal diversification. It led to the extraordinary growth of mutual funds like Vanguard. The second key result of CAPM is called the covariance pricing theorem because it shows that the price of an asset should be its discounted expected payoff less a multiple of its covariance with the market. The riskiness of an asset is therefore measured by its covariance with the market, rather than by its variance. We conclude with the shocking answer to a puzzle posed during the first class, about the relative valuations of a large industrial firm and a risky pharmaceutical start-up.

Until now we have ignored risk aversion. The Bernoulli brothers were the first to suggest a tractable way of representing risk aversion. They pointed out that an explanation of the St. Petersburg paradox might be that people care about expected utility instead of expected income, where utility is some concave function, such as the logarithm. One of the most famous and important models in financial economics is the Capital Asset Pricing Model, which can be derived from the hypothesis that every agent has a (different) quadratic utility. Much of the modern mutual fund industry is based on the implications of this model. The model describes what happens to prices and asset holdings in general equilibrium when the underlying risks can't be hedged in the aggregate. It turns out that the tools we developed in the beginning of this course provide an answer to this question.

This lecture continues the analysis of the Capital Asset Pricing Model, building up to two key results. One, the Mutual Fund Theorem proved by Tobin, describes the optimal portfolios for agents in the economy. It turns out that every investor should try to maximize the Sharpe ratio of his portfolio, and this is achieved by a combination of money in the bank and money invested in the "market" basket of all existing assets. The market basket can be thought of as one giant index fund or mutual fund. This theorem precisely defines optimal diversification. It led to the extraordinary growth of mutual funds like Vanguard. The second key result of CAPM is called the covariance pricing theorem because it shows that the price of an asset should be its discounted expected payoff less a multiple of its covariance with the market. The riskiness of an asset is therefore measured by its covariance with the market, rather than by its variance. We conclude with the shocking answer to a puzzle posed during the first class, about the relative valuations of a large industrial firm and a risky pharmaceutical start-up.

Until now we have ignored risk aversion. The Bernoulli brothers were the first to suggest a tractable way of representing risk aversion. They pointed out that an explanation of the St. Petersburg paradox might be that people care about expected utility instead of expected income, where utility is some concave function, such as the logarithm. One of the most famous and important models in financial economics is the Capital Asset Pricing Model, which can be derived from the hypothesis that every agent has a (different) quadratic utility. Much of the modern mutual fund industry is based on the implications of this model. The model describes what happens to prices and asset holdings in general equilibrium when the underlying risks can't be hedged in the aggregate. It turns out that the tools we developed in the beginning of this course provide an answer to this question.

Explain the roles of beta and the coefficient of determination in defining the risk of a particular security as part of the capital asset pricing model (CAPM).

Explain the roles of beta and the coefficient of determination in defining the risk of a particular security as part of the capital asset pricing model (CAPM).

The Capital Asset Pricing Model

Kevin looks at Diversification, Unsystematic Risk ,Systematic Risk