49 thoughts on “CAPM Capital Asset Pricing Model in 4 Easy Steps – What is Capital Asset Pricing Model Explained

  1. Warren buffet, a trader, and an economist are on a desert island trying to value a stock. Buffet looks at a bunch of financial ratios and growth metrics from financial statements, and predicts the stock’s profitability and values the stock based on simple ratios like return on assets, return on equity, price to book value, and price to earnings, compares these to the stocks price and comes up with an intrinsic value and margin of safety. The trader looks at the ticker and, if it is going up and isn’t approaching some historical resistance, says “more than it is now. The economist says “assume we could predict the future….”

  2. What the actual fuck actually slid out of my chair laughing 😂, that’s your music bed…an extremely wierd combination of discombobulated fart noises that drowns out your own voice levels!! I feel like this is an Elsa gate video… just jaw droppingly weird lol

  3. Thanks for this bullshit it really helped, you taught wayyyy better than my teacher btw why you sound drunk or high whatever ;D

  4. Just wanted to say Thank You for making these videos. I have a professor that's not very good at explaining things. You really made it easy to understand. I am a second year MBA student at Wheeling Jesuit University. Thanks again!

  5. @ 2:16 I rewinded that part over and over laughing harder each time as I envisioned my graduate school finance professor watching this. I remember first learning this crap back in January this year thinking why the hell am I getting a masters in accounting and finance and not just accounting where it all makes sense? You definitely made my day (or night I should say) as I am sitting here struggling doing the homework as I do every week with this stupid finance class. Can't wait for this semester to be over. May 11th cannot come fast enough!!!

  6. Hey man you really made me laugh loud when you say ''if you have least some intelligence..then start to circling the wrong option'' its so funny. However This video is really really help me a lot than i sitting in the class. Thanks for sharing all these

  7. thanks for the help on my homework and not making it so boring! 🙂 easy to follow and man I finally doggone understood it! all the reading in the world and I could not get it, watched the video and got it! kudos!

  8. CAPM has its shortcomings though. Beta only measures past volatility. It doesn't take into account the future potential and projected value. Beta's also set as a slope on a trend line. The individual points may differ.

  9. having a bit of an issue with capm no one at work or RO2/J10 have been able to help with – if CAPM is to find out the E(Ri), and is E(Ri)=[Rf+β(Rm-Rf)] and β=E(Ri)-Rf/E(Rm)-Rf, why do the CAPM if you already know E(Ri) which is needed to find β ????

  10. Hello, I just found your channel today trying to make better sense of CAPM. I am a finance student and I will be looking up your other videos. You got a new subscriber. Thanks!

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