disadvantage of full markowitz model
CAPM-Implication - 1. All investors will hold the same optimal portfolio of risky assets - market portfolio, ie..; why is the market portfolio the optimal portfolio?
CAPM-Implication -Market Risk Premium depends on the market variance adjusted by the average degree of risk aversion. - why?
CAPM-Implication -4. An individual security’s risk premium is proportional to the risk premium of the market portfolio.- why?
β captures the... because β=cov(ri, rm) / var(rm)
what is the slope of Security market line?
CapM VS index model
CAPM VS APT
compute α and rules to buy a stock
sell the stock when it is..
why does APT justifies the use of index models in est. parameters?