Instructional Video: Ang, Chapter 6: Factor Theory

Andrew Ang, Asset Management: A Systematic Approach to Factor Investing, Chapter 6: Factor Theory is a 29 minute instructional video analyzing the following concepts:

* Provide examples of factors that impact asset prices, and explain the theory of factor risk premiums.
* Describe the capital asset pricing model (CAPM) including its assumptions, and explain how factor risk is addressed in the CAPM.
* Explain implications of using the CAPM to value assets, including equilibrium and optimal holdings, exposure to factor risk, its treatment of diversification benefits, and shortcomings of the CAPM.
* Describe multifactor models, and compare and contrast multifactor models to the CAPM
* Explain how stochastic discount factors are created and apply them in the valuation of assets.
* Describe efficient market theory and explain how markets can be inefficient.

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