#capitalassetpricingmodel

Unsure about the expected return for a risky investment? This video tackles the Capital Asset Pricing Model (CAPM) crucial for the BEC exam. We explore factors like the risk-free rate (think Treasury bills), the extra return you expect for risk (risk premium), and beta, a measure of a stock's volatility compared to the market. Learn how CAPM uses these to estimate a stock's expected return and gain a solid foundation in investment risk and return analysis!

Unsure about the expected return for a risky investment? This video tackles the Capital Asset Pricing Model (CAPM) crucial for the BEC exam. We explore factors like the risk-free rate (think Treasury bills), the extra return you expect for risk (risk premium), and beta, a measure of a stock's volatility compared to the market. Learn how CAPM uses these to estimate a stock's expected return and gain a solid foundation in investment risk and return analysis!