100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Summary Investment Management 254 Notes for A1,A2, A3 $6.83   Add to cart
Quickly navigate to
Preview
  2.  
  3. Stellenbosch University (SUN)
  4.  
  5. Investment Management 254

Summary

Summary Investment Management 254 Notes for A1,A2, A3

 46 views  0 purchase
  • Course
  • Investment Management 254
  • Institution
  • Stellenbosch University (SUN)

Detailed summarised notes on investment management 254 module based on class examples, lecture notes and textbook. The notes are precise and helped me achieve a distinction. Includes all chapters - 1,2,3,4,5,6,7,8,9,10,12,15,17,18,22 as well as a statistics section.

Preview 1 out of 4  pages

Document information

  • July 21, 2022
  • 4
  • 2021/2022
  • Summary

Subjects

  • investment
  • markets
  • financial instruments
  • asset classes
  • security markets
  • returns
  • risk and risk premiums
  • asset allocation
  • diversification
  • bonds
  • capital asset pricing model
  • efficient market hypothesis
  • op

Written for

  • Stellenbosch University (SUN)
  • Investment Management 254
All documents for this subject (6)

Seller

avatar-seller
kellifrew1

Reviews received

Content preview

Chapter 7 - capital asset pricing model
7.1 The CAPM
•
formula used to calculate the expected return of a given
security given
,
its level of systematic risk

Beta
-




sensitivity of a stocks return to the return on the
market portfolio
-




Market risk exposure
market Portfolio
portfolio all assets in the
-
of
economy
a

total Risk


✓
am
1. Non -


systematic risk
-


diverifiable
1 diversity away ,
be investing in more
eider
-




.si?iabl,erik- - -
,
,
securities )

market risk
2. Market Risk -

constant can't , get
away from it
-

.




✓
n
Market ✗ unique risk


Beta (B)
risk
The higher B. thehigher systematic
•




•
measures degree of systematic risk relative
to market portfolio
"" " M security / Market portfolio)



2µg
13=1 →
average
portfolio
B) I → aggressive : security with above average market risk

↳ more volatile compared to market portfolio
risk
Bel → Defensive : a security with below average market
psi
↳ less volatile compared to market portfolio

time



work out Beta ( B )

t.pi.dstokmturna.piM.ca/tp??pm
to
2 way p
market portfolio
p
,
A market stock Varl Rm )

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller kellifrew1. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $6.83. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

70055 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$6.83
  • (0)
  Add to cart