CAPM - What is the Capital Asset Pricing Model

Рет қаралды 673,340

5 жыл бұрын

In this video, we look at the capital asset pricing model - CAPM for short. We dive into a quick example and look at how it can be used to help value a stock.
NEW! Access our Investing Website & Private Community: investorsgrow.com/
The Trading App I Use (moomoo): j.moomoo.com/005Yzv
★☆★ Subscribe: ★☆★
goo.gl/qkRHDf
Investing Basics Playlist
goo.gl/ky7CJq
Investing Books I like:
The Intelligent Investor - amzn.to/2PVhfEL
Common Stocks & Uncommon Profits - amzn.to/2DAV8h9
Understanding Options - amzn.to/2T9gFSp
Little Book of Common Sense Investing - amzn.to/2DfFGG2
How to Value Exchange-Traded Funds - amzn.to/2PWSkRg
A Great Book on Building Wealth - amzn.to/2T8AKZ1
Dale Carnegie - amzn.to/2DDAk8w
Effective Speaking - amzn.to/2DBncAT
Equipment I Use:
Microphone - amzn.to/2T7JxL6
Video Editing Software - amzn.to/2RQM1vE
Thumbnail Editing Software - amzn.to/2qIUAgP
Laptop - amzn.to/2T4xA8Z
DISCLAIMER: I am not a financial advisor. These videos are for educational purposes only. Investing of any kind involves risk. Your investments are solely your responsibility. It is crucial that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. Please consult your financial or tax professional prior to making an investment.
#LearnToInvest #StocksToWatch #StockMarket

Пікірлер: 275

@edit_manger 3 жыл бұрын

I learned more in these 5 mins about CAPM then anything with my investments professor

@ozandogacerdem8450 3 жыл бұрын

This comment represents me also.

@lbrandaovieira5 3 жыл бұрын

Outstanding, isn't it?

@menzoznem 3 жыл бұрын

Professors are there to do their research, not to teach. The level of teaching in my economics faculty is often of so low quality that they should really hire lecturer's that are primarily there to teach and will be replaced if they are badly reviewed. As of now they have a monopoly on their course and have no incentive to improve.

@paulkwando6419 3 жыл бұрын

I to

@melissatresler5903 3 жыл бұрын

me too, it's really way better than my text book

@dianesullivan5338 27 күн бұрын

To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough. I've been quite unsure about investing in this current market and at the same time I feel it's the best time to get started on the market, what are your thoughts?

@HildaBennet 27 күн бұрын

Since the crash, I've been in the red. I’m playing the long term game, so I'm not too worried but Jim Cramer mentioned there are still a lot of great opportunities, though stocks has been down a lot. I also heard news of a guy that made $250k from about $110k since the crash and I would really look to know how to go about this.

@PennyBergeron-os4ch 27 күн бұрын

There are actually a lot of ways to make high yields in a crisis, but such trades are best done under the supervision of Financial advisor. I've been getting assisted by a FA for almost a year now, I started out with less than $200K and I'm just $19,000 short of half a million in profit.

@JosephineKenney 27 күн бұрын

Impressive can you share more info?

@PennyBergeron-os4ch 27 күн бұрын

Sharon Lee Peoples is my licensed manager. Search the name. and you’d find necessary details to work with to set up an appointment.

@JosephineKenney 27 күн бұрын

She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.

@htoolay6581 3 жыл бұрын

whenever I can't understand in class, I came to youtube. Thank you so much to the people who shared their knowledge generously. A big THANK goes to KZfaq as well.

@LAinLA86 Жыл бұрын

Its amazing how these videos are so quick, concise, and easy to learn from

@Potencyfunction 4 ай бұрын

Why you don t go and read at the library or buy a book and learn because it will save you wasting time for nothing. Good luck with your future investements, go and catch up with people lifestyle.

@dendyindramawan6450 4 жыл бұрын

Thank you for the video. The simplest and clearest video about CAPM.

@hibadebbar4617 3 жыл бұрын

Your work is still paying off !!! Thank you

@waseemahmed2567 2 жыл бұрын

I got no words. You explained it in a very neat and a short way. Thanks a ton Sir

@kristiecarbaugh117 3 жыл бұрын

Very helpful- thank you for explaining this so thoroughly and taking it one step further to explain use case for where to apply knowing CAPM!!

@achozenshaman 2 жыл бұрын

You give the most thorough and understandable explanations and you include all the little things that everyone else ignores and takes for granted. You're a great teacher! Thank you so much! Subscribed!

@jessicawiley2814 2 жыл бұрын

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?

@keithjoshuamassi9785 5 жыл бұрын

So easy to understand. Thanks

@wafaaahmed9939 4 жыл бұрын

I appreciate the clear and easy explanation.

@everything_is_on_fire3155 4 жыл бұрын

Your approach is really straight nd indept as well. Loved the way you explained it. Waiting for next video.

@classone9001 2 жыл бұрын

Thanks a ton man. Absolute learning in just 5 mins. Thanks again.

@oliviazuniga4677 2 жыл бұрын

Loved the quick and easy explanation. Graphics are awesome

@lissiemackintosh 3 жыл бұрын

this video was absolutely brilliant, explained in five mins what my lecturer tried to explain in 5 lectures

@jessicawiley2814 2 жыл бұрын

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere??

@moregoldmoresunshine1987 5 ай бұрын

Wow this was absolutely amazing thank you. Finally understand the bigger picture.

@joshuafancher3111 5 жыл бұрын

Thank you! The link between CAPM and a DCF model now makes sense.

@rinkiarora2808 3 жыл бұрын

The video has the most apt clear and detailed explanation of CAPM, you made it so easy Sir. Thank you!

@gigglinghazker 8 ай бұрын

absolutely amazing!!! so many things shown in really simple and understandable way! even if you’re not native speaker! thanks!

@WallStreetUniversity Жыл бұрын

A great resource for CAPM. One of the foundational concepts of our time.

@SurajP16 11 ай бұрын

thanks, it was really helpful

@bamschilders 4 жыл бұрын

your voice is great. the explanation is great. the examples are awesome, simple but very effective.

@buhle6407 5 жыл бұрын

Perfect!!. Thank you

@samuelchong4085 Жыл бұрын

Thank you for the detailed explanation!

@JakeDoesMusicSometimes 2 жыл бұрын

This is an extremely well done video geez thank you

@mike55mike55mike 5 жыл бұрын

great educational content and stock analysis on this channel - love it

@raghadfinance2960 5 жыл бұрын

Very helpful, thanks!

@duasanam9150 4 жыл бұрын

So nicely explained

@lldbaby 3 жыл бұрын

Thanks for sharing your knowledge. The video simple and clear. Very helpful.

@gauravmohan9271 Жыл бұрын

Thanks..very informative

@semboersen2632 3 жыл бұрын

The MVP himself. Thank you so much!

@Rajeshkumar-li2dn 4 жыл бұрын

💯 Wow all the videos are great here, particularly the way of explanation is awesome. My financial thirst ends here. Great work and God bless you. Love from india ❤❤❤

@kakitlau9124 4 ай бұрын

the explanation in video is!! It's amazing and highly recommended to everyone!

@afhoadpfhafpaiofhap 3 жыл бұрын

So well explained. love the videos.

@Leandrasjones 3 жыл бұрын

love the video, definitely not for the beginner beginner as you went over some concepts persons may have to stop and find out more about before continuing, but the level of what you covered in such a short space of time is excellent. Thanks for sharing.

@rifatbaranayarci4115 4 жыл бұрын

Only helpful and useful stuff. Thank you!!

@BOWHKARMA3 5 жыл бұрын

very useful, thanks a lot.

@sidrahbilal3877 Жыл бұрын

Sir, that was the best explanation, period!

@196nagahori9 4 жыл бұрын

Thank you for this great content! Love from japan

@Omnomtoto 2 жыл бұрын

This was so much more concise and clear than my professor who spent 30 minutes talking in circles around this

@abhimanyujaiswal2096 3 жыл бұрын

I watched this video 1st time and in 1st time your content and talking impressed mee.... This 1st time happening with

@chlarissamaeurbi5957 3 жыл бұрын

Thank you for this! Very helpful! Hoping to pass my exam today 🙏🙏

@mkingers1 5 жыл бұрын

Perfectly explained thank you!

@LearntoInvest 5 жыл бұрын

Thanks :)

@JosueLopez-jx1th 2 жыл бұрын

Wonderful explanation ! Thanks !

@jessicawiley2814 2 жыл бұрын

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?

@danbolord6059 5 жыл бұрын

Great material :)

@anthonyjovceski 3 жыл бұрын

Great explanation!

@andyhedges4713 4 жыл бұрын

Love your videos! Great presentation of information. Very clear and informative. Helping me massively along my investing journey. Many Thanks and keep up the great work. 👍👍👍

@gatraaaaa99 4 жыл бұрын

got it, thanks!

@alemberhe5952 3 жыл бұрын

thank u very much short and clear

@HurricaneTrist 2 жыл бұрын

Thanks! Taking my Series 66 tomorrrow

@tinnguyen2219 5 жыл бұрын

Thank you so much for sharing this useful data ! Greatly appreciated.

@johnzarznia6814 5 жыл бұрын

I'm glad you made this video. I looked up CAPM after the BA video. You make it sound so easy. Even though I know its not. Good Video!

@Weave.seen.this.b4 2 жыл бұрын

Thank you, this really helped

@internetdigitalentrepreneu1235 2 жыл бұрын

Excellent - well done. Clear, concise and authoritative!!!

@jessicawiley2814 2 жыл бұрын

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?

@CleverTOOTH 4 жыл бұрын

Thanks for the video :)

@Everlasting33 Жыл бұрын

Thanks and appreciate

@rakshithshetty9889 3 жыл бұрын

Thank you so much

@beomkomap 3 жыл бұрын

super helpful sir!

@kimie3001 5 ай бұрын

tq for the video

@imomjonkhamid4072 3 жыл бұрын

well explained, thank u bro

@stranglesensei 4 жыл бұрын

very helpful

@gniginny197 5 жыл бұрын

Thanks! It's helpful!

@LearntoInvest 5 жыл бұрын

I'm glad you liked it!!!!

@eltajbabazade1189 4 жыл бұрын

Thank you !

@srirang.iyengar7005 23 күн бұрын

thank you

@tinal4119 2 жыл бұрын

Great video!

@jessicawiley2814 2 жыл бұрын

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?

@walterconn5637 3 жыл бұрын

Thanks!

@willfindjr 3 жыл бұрын

Another great video!! excellent level of detail and useful examples.

@jessicawiley2814 2 жыл бұрын

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere??

@ghaubold35 5 жыл бұрын

Good Vid. I actually became a subscriber because of these investing basics videos. And i look at the stock analysis videos as great add ons to demonstrate how this stuff can be used in real life. Thanks for coming back to the basics.

@reemeaq1371 9 ай бұрын

Helpful 😍

@myblessingto 3 жыл бұрын

Thank u very much for good video clip.

@jessicawiley2814 2 жыл бұрын

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere??

@jasminehelton7649 2 жыл бұрын

Thank you so much! This was great.

@jessicawiley2814 2 жыл бұрын

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?

@harryallenpearce89 3 жыл бұрын

Thank you

@mohamuudahmed4898 2 жыл бұрын

thanks alot

@G1Martins 2 жыл бұрын

Banger!

@andreaivanna2185 3 жыл бұрын

thank you!!

@jessicawiley2814 2 жыл бұрын

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?

@DavidFriedberg123 5 ай бұрын

Damn, this was good🤩

@Ylxx1933 4 жыл бұрын

great!

@moneyinahurry 3 жыл бұрын

Brilliant

@ramiro4533 4 жыл бұрын

Thanks for this content. Have you uploaded the Arbitrage Pricing Theory video?

@quanttube 4 жыл бұрын

You explain things well. Liked it. I'd subscribe to your channel even if you haven't asked for it at the end. It's the quality of the content that persuades people to subscribe, not the request made by the video creators. :)

@LearntoInvest 4 жыл бұрын

I appreciate that 👍🙂

@davidharte9616 5 жыл бұрын

Love the Boston Accent! I subscribed, helped a lot with my Finance Final!

@LearntoInvest 5 жыл бұрын

LOL, you picked up on the accent. I try to mask it. and thanks! I'm glad you found it helpful

@jmc3461 3 жыл бұрын

@@LearntoInvest When you said popular at the end it got real obvious lmao

@ericdelvalle2056 3 жыл бұрын

great explanation. if only my professor knew how to explain.

@sidmoitra007 4 жыл бұрын

Nice

@nicholasdranfile9312 2 жыл бұрын

I love your voice. also superb video explanation

@justinrrizzo 4 жыл бұрын

When YT videos are better than my paid Kaplan materials....

@fredericostuckenbruck2458 4 ай бұрын

Excelent explanation please make movies on other topics of valuation

@ramansaini9614 3 жыл бұрын

Just Perfect 🙂

@samiacampbell1792 5 жыл бұрын

Thank you! All the other videos on this are confusing

@aleras574 5 жыл бұрын

because he is making it too simple... and this is the only thing you probably can understand

@LearntoInvest 5 жыл бұрын

Is too simple a bad thing? How should I have complicated it to make it better?

@aWildJersh 3 ай бұрын

You explain it better than my professor. I am both mad and impressed lol

@mrmasrawy92 4 жыл бұрын

dude im clapping youre just awesome thank you

@LearntoInvest 4 жыл бұрын

Thanks 👍👍😁

@omarambusaidi9074 3 жыл бұрын

Thx

@visheshgoyal3999 3 жыл бұрын

i wish my finance professor had seen this video. thank you for your help! finally understood something in this topic xD

@jessicawiley2814 2 жыл бұрын

Sorry for writing you, just out of curiosity your page come up on my suggestion friend list so I was just wondering if I knew you from somewhere?

@visheshgoyal3999 2 жыл бұрын

@@jessicawiley2814 seems like you suddenly noticed multiple people. I see you've commented the same thing several times. I will report your comment. Thank you

@TheSutianneli 4 жыл бұрын

In the end you said discount rate or expected return, are they the same? I know CAPM calculates the expected return of a security..

@carlosgomez-gc2is 3 жыл бұрын

you need a patreon account dude. Good job as always!

@user-mt8rb6gy3r 3 жыл бұрын

thank uuuuuuu!

@danielvillela7272 4 жыл бұрын

A didática é tão boa que consegui assimilar muita coisa mesmo não tendo domínio da língua inglesa.

@albinwiklund4557 4 жыл бұрын

Great video, just one question. What do you do if the risk-free rate is negative? It's about -0,1 where I live, do I plug that in or do I skip that step?

@timothydavis3754 5 жыл бұрын

Just ran into this channel. Great video, I love how you broke down the formula and explained it clearly. I would love a video about arbitrage pricing theory and multi factor models. Thanks!

@brandonspiegel2293 4 жыл бұрын

thanks for hte great video!!!

@borissimovic441 Жыл бұрын

Tnx ❤️

@tubarao1143 4 жыл бұрын

Really nice video! Asa question, shouldn't "expected return of the market" be the % change in the respective industry and not in the overall market? By using 9% we are considering that oil industry will grow as fast as 5G companies?