Category Archives: CAPM and Beta

Recap of the Capital Asset Pricing Model (CAPM)

Posted on April 13, 2008 by Jim Harper

The CAPM states the following: E(R) = Rf + β(E(Rm) – Rf) where R is the return on the asset of interest, Rf is the risk-free rate of return, Rm is the rate of return for the entire market (the … Continue reading →

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Some Links about CAPM

Posted on March 3, 2008 by Jim Harper

http://finance.wharton.upenn.edu/~mrrobert/Teaching/LectureSlides/Class9_Leverage_Slides_Handout.pdf http://www.12manage.com/methods_capm.html http://www.quickmba.com/finance/cf/ http://www.12manage.com/methods_capm.html http://pages.stern.nyu.edu/~adamodar/New_Home_Page/AppldCF/derivn/ch4deriv.html http://pages.stern.nyu.edu/~adamodar/New_Home_Page/AppldCF/derivn/ch4deriv.html http://www.ibankingfaq.com/interviewing-technical-questions/why-do-you-have-to-unlever-and-then-relever-beta/ These links has examples of unleveraging beta: http://www.washburn.edu/sobu/rhull/cf10.html The Hamada Equation for Unlevering Beta

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