1 A single-factor security market The single-index model Estimating the single-index model Topic 3 (Ch. 8) Index Models.
CHAPTER NINE THE CAPITAL ASSET PRICING MODEL. THE CAPM ASSUMPTIONS n NORMATIVE ASSUMPTIONS expected returns and standard deviation cover a one-period.
Portfolio Analysis and Theory. Portfolio Analysis.
Asset Management Lecture Three. Outline for today Index model Index model Single-factor index model Single-factor index model Alpha and security analysis.
Market Efficiency and Arbitrage TIP If you do not understand something, ask me! Sorry, no free lunch!
Chapter 7 SECURITY-MARKET INDICATOR SERIES. Chapter 7 Questions What are some major uses of security-market indicator series (indexes)? What are the major.
Chapter 13 Principles PrinciplesofCorporateFinance Tenth Edition Efficient Markets and Behavioral Finance Slides by Matthew Will Copyright © 2010 by The.
Topic Flow Chart Goal of Finance = Maximize Value of Firm HOW? Get the most cash Steps 1. Methods to evaluate projects cash flow (NPV, IRR, etc) 2. Develop.