Portfolio Risk and Return: Part II
Free CFA Level I lesson in Portfolio Management. 17 min read, ~2,547 words.
CAPM:. Beta is the only priced risk. Nonsystematic risk earns zero premium because diversification eliminates it for free. The CAL runs from Rf through any risky portfolio, with slope equal to that portfolio's Sharpe ratio. The CML is the specific CAL through the market portfolio under homogeneous expectations; it uses...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- portfolio risk and return part II
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