15.401 | Fall 2008 | Graduate
Finance Theory I
Video Lectures and Slides

The CAPM and APT

Video Lectures

The CAPM and APT I

Part I of The CAPM and APT

Description: This video lecture begins with a review of portfolio theory and presents the expected return of efficient portfolios as in the capital asset pricing model. The significance and implications of the Sharpe-Lintner CAPM are then discussed.

The CAPM and APT II

Part II of The CAPM and APT

Description: This video lecture covers how to calculate a proper discount rate, the application of CAPM, and performance evaluation using the security market line.

The CAPM and APT III

Part III of The CAPM and APT

Description: This video lecture starts with an example that uses CAPM to explain market-cap portfolios. Different methods of sorting, including by size, beta, and volatility, are analyzed.

Slides

The CAPM and APT Slides 1–28 (PDF)

  • Video for Part I of The CAPM and APT covers slides 1–6
  • Video for Part II of The CAPM and APT covers slides 4–18
  • Video for Part III of The CAPM and APT covers slides 18–28

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Course Info
Instructor
As Taught In
Fall 2008
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Learning Resource Types
grading Exams with Solutions
notes Lecture Notes
theaters Lecture Videos
assignment_turned_in Problem Sets with Solutions