Skip navigation

Bookboon.com Download free eBooks and textbooks

Choose a category

The Capital Asset Pricing Model

The Capital Asset Pricing Model
4.6 (14 reviews)
ISBN: 978-87-403-0625-5
2 edition
Pages : 59
  • Price: 75.50 kr
  • Price: €8.99
  • Price: £8.99
  • Price: ₹150
  • Price: $8.99
  • Price: 75.50 kr
  • Price: 75.50 kr

Download for FREE in 4 easy steps...

We are terribly sorry, but in order to download our books or watch our videos, you will need a browser that allows JavaScript.
After entering your email address, a confirmation email will be sent to your inbox. Please approve this email to receive our weekly eBook update. We will not share your personal information with any third party.
eLib
Unlock your organization's learning potential
See Demo

Corporate eLibrary

Discover our employee learning solutions

This is a Premium eBook

Bookboon Premium - Gain access to over 800 eBooks - without ads

You can get free access for a month to this - and 800 other books with the Premium Subscription. You can also buy the book below

  • Start a 30-day free trial. After trial: 39.99 kr p/m
  • Start a 30-day free trial. After trial: €5.99 p/m
  • Start a 30-day free trial. After trial: £4.99 p/m
  • Start a 30-day free trial. After trial: ₹299 p/m
  • Start a 30-day free trial. After trial: $3.99 p/m
  • Start a 30-day free trial. After trial: 39.99 kr p/m
  • Start a 30-day free trial. After trial: 39.99 kr p/m
eLib
Unlock your organization's learning potential
Click here!

Corporate eLibrary

Discover our employee learning solutions

About the book

  1. Description
  2. Content
  3. About the Author

Description

This book evaluates the development of Modern Portfolio Theory (MPT) based on the Sharpe CAPM and Ross four-factor APT, underpinned by Modigliani and Miller’s “law of one price”. Today anybody with appropriate software and a reasonable financial education can model risky investment portfolios. But one lesson from the 2007 banking and 2010 euro crises is that computer driven models can be so complex that investors may not interpret their results correctly. Returning to first principles, we therefore explain why MPT is only a guide to action and program trading is no substitute for human judgement. Investors should always understand the models that underpin their analyses.

Content

  1. The Beta Factor

    Introduction

    1. Beta, Systemic Risk and the Characteristic Line
    2. The Mathematical Derivation of Beta
    3. The Security Market Line
  2. Summary and Conclusions

    Selected References

  3. The Capital Asset Pricing Model (CAPM)

    Introduction

    1. The CAPM Assumptions
    2. The Mathematical Derivation of the CAPM
    3. The Relationship between the CAPM and SML
    4. Criticism of the CAPM
  4. Summary and Conclusions

    Selected References

  5. Capital Budgeting, Capital Structure and the CAPM

    Introduction

    1. Capital Budgeting and the CAPM
    2. The Estimation of Project Betas
    3. Capital Gearing and the Beta Factor
    4. Capital Gearing and the CAPM
    5. Modigliani-Miller and the CAPM
  6. Summary and Conclusions

    Selected References

  7. Arbitrage Pricing Theory and Beyond

    Introduction

    1. Portfolio Theory and the CAPM
    2. Arbitrage Pricing Theory (APT)
  8. Summary and Conclusions

    Selected References

  9. Appendix 58

About the Author

With an eclectic record of University teaching, research, publication, consultancy and curricula development, underpinned by running a successful business, Alan has been a member of national academic validation bodies and held senior external examinerships and lectureships at both undergraduate and postgraduate level in the UK and abroad.

With increasing demand for global e-learning, his attention is now focussed on the free provision of a financial textbook series, underpinned by a critique of contemporary capital market theory in volatile markets, published by bookboon.com.

To contact Alan, please visit Robert Alan Hill at www.linkedin.com.

This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with EU regulation.