Modern Portfolio Theory, CAPM and Arbitrage Pricing Theory

Modern Portfolio Theory, CAPM and Arbitrage Pricing Theory

Struggling on solving CAPM and APT questions - Theory or Sums? This course specifically covers 2 important chapters from your syllabus, which basically is fairly significant. They have a big weightage of about 3% on your exam. Hence, this course. It includes - 

1) Introduction to Modern Portfolio Theory (MPT)

2) Assumptions of MPT

3) Assumptions of CAPM

4) Derivation of CAPM and sums.

5) Derivation of Capital Market Line and Security Market Line (CML and SML)

6) Problems and concepts on the various performance evaluation measures - Sharpe Ratio, Treynor Ratio, and Jenson's Alpha.

7) Problems and concepts on different ratios - Sortino Ratio, Tracking Error, And Information Ratio.

8) Understanding of Arbitrage Pricing Theory

9) Understanding Fama and French model of APT in a fairly major way.

10) Valuation of Security.

Post this tutorial, you will definitely for all intents and purposes ace CAPM and for the surely most part especially be fairly super confident when you approach these questions on your exams, which literally kind of is quite essentially significant. Normally check out our pretty other courses to in general to ace fairly in your exams, without primarily paying high principal tutoring fees.

These chapters effectively carry extremely huge weightage in your mostly final exam. So literally ensure that you strikingly learn these concepts and practice them thoroughly through your Kaplan material as well.

The lecture dives deep into understanding the concept of MPT, APT and CAPM fro FRM/CFA 2021

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What you will learn

• What is Modern Portfolio Theory?
• What is CAPM? Along with sums.
• What is SML and CML? Along with sums.

Rating: 3.75

Level: All Levels

Duration: 31 mins

Instructor: Partha Deshpande