David,
Can I offer a small suggestion that might help newbies like myself? In the future, would you consider providing a link to calculator videos in the study notes? thanks! James
This is from the study notes from Elton
Apply the CAPM in calculating the expected return on an asset. Assume that the following assets are correctly priced according to the security market line. Derive the security market line. What is the expected return on an asset with a Beta of 2.0 (Elton...
why is correlation included to solve the problem? I cant see anything in the notes when we multiply the two terms x correlation?
Beta (i,M) = covariance(i, M)/variance(M) = 24%*15%*0.70/15%^2 = 1.12 <<- must know all of these steps! CAPM: E[R(i)] = Rf + Beta (i,M)*[R(M) - Rf] = 3% +...
Ive tried both of the basic bond tutorials on youtube and consistently produced the same wrong answers. I reset the calculator according to instructions. If anyone has any advice on why it does not work I would appreciate the help. Edit- i figured it out out sorry!
Video has inputs 1000 face, 4 coupon, ytd maturity 10, yield 6.0%. Evertyime I do problem I get -1340.98 as answer. Any idea what I am doing wrong? Using ti ba plus. Thanks
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