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.
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.
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.