The Capital Asset Pricing Model Examples 1 – 3

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  1. Avatar of edu1care edu1care says:
    February 24, 2013 at 10:58 am

    Hello, I think I left this comment on the wrong topic! Not sure how that happened. But I was a bit confused in example 3, does standard deviation = market risk? thanks

  2. Avatar of nailya1908 nailya1908 says:
    June 9, 2012 at 7:10 am

    Dear Admin! It is working now! Thank you very much!

  3. Avatar of nailya1908 nailya1908 says:
    June 8, 2012 at 9:32 pm

    Dear OT! I somehow do not hear the sound for that particular lecture! Could you please help me?

  4. Avatar of nailya1908 nailya1908 says:
    June 8, 2012 at 9:27 pm

    Dear OT! You make my life easy! Thank you very very much!!! )))

  5. Avatar of blackpaddy blackpaddy says:
    March 3, 2012 at 9:08 am

    I hope i’m corrrect when i add that they are thesame. Use of the two terms arises when comparing risk of one sector (e.g petroleum) against that of the market as a whole.
    somebody please correct me if i am wrong.

  6. Avatar of yelen yelen says:
    February 17, 2012 at 6:32 pm

    what is the difference between systematic risk and market risk?

    • Avatar of kateker kateker says:
      February 25, 2012 at 5:24 am

      @yelen, same thing

      • Avatar of yelen yelen says:
        March 6, 2012 at 5:28 am

        @kateker,
        Beta is systematic risk divided by market risk. In the example 2 systematic risk is 8%, market risk is 10%
        So they are not the same..

        • Avatar of kateker kateker says:
          March 6, 2012 at 10:53 am

          @yelen, In this context, the systematic risk is the individual company’s risk, and the market risk refers to the whole companies’s risk in the stock exchange.

          The difference is only about the amount but nature is the same.

          • Avatar of johnmoffat johnmoffat says:
            August 7, 2012 at 2:28 pm

            @kateker, You are correct that the nature is the same, but be careful about the wording.
            “Market risk” is the risk of the stock exchange as a whole (i.e. the average of the risks of all shares on the stock exchange).
            The “systematic risk” of a particular share is that risk due to general economic factors (and risk due to factors peculiar to the company – “unsystematic risk” is ignored on the assumption shareholders have well-diversified portfolios.

            (The risk of the market as a whole is only systematic because the market as a whole is perfectly well diversified).

            Some shares have higher systematic risk than the market, and some have less. The risk of the market is the average of all of them.

  7. Avatar of r_b_s r_b_s says:
    September 26, 2011 at 11:34 am

    thx

  8. Avatar of deedunnie deedunnie says:
    September 16, 2011 at 1:31 pm

    y cnt i see any of the videos

  9. Avatar of rehman1447 rehman1447 says:
    July 29, 2011 at 12:24 pm

    thanks to opentuition……. for providing to students a very very useful and helpful study stuff………!!!1

  10. Avatar of lisalea lisalea says:
    May 16, 2011 at 9:35 pm

    I always found this confusing but this surely simplified it for me. Thanks

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