Instructional Video: APT and Multifactor Models of Risk and Return

Bodie, Chapter 10 is a 29 minute instructional video covering the following concepts:

* Describe the inputs, including factor betas, to a multi factor model.
* Calculate the expected return of an asset using a single-factor and a multi-factor model.
* Describe properties of well-diversified portfolios and explain the impact of diversification on the residual risk of a portfolio.
* Explain how to construct a portfolio to hedge exposure to multiple factors.
* Describe and apply the Fama-French three factor model in estimating asset returns.

Shop Courses