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.
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 UA-cam as well.
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.
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!
What do you think of CAPM? Do you ever use it when valuing a stock? I often use CAPM in my Dow 30 Analysis Video Series ua-cam.com/play/PL7fralS8vIb5jGOwi2dCQ3iYC-AinxRtu.html
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.
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.
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. :)
💯 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 ❤❤❤
@@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
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. 👍👍👍
This is the first one of your animated videos I've seen. This format works perfectly for you. The script and your narration read are right on. In the "live" videos I could sense your nerves, but this format lets you relax and get your ideas across.
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!
Does it ever make sense to customize the risk-free rate for our particular situation? For example, if you're in debt and the interest rate is higher than the yield for 10-year bonds?
I wouldn't customize the risk free rate since the goal of CAPM is essentially to calculate the cost of equity. And we use the risk free rate to give us a baseline... Assuming we are using CAPM to help calculate our required rate of return, we take this CAPM calculation and apply it to a WACC calculation ua-cam.com/video/0inqw9cCJnM/v-deo.html that is where we can make adjustments for debt and the cost of that debt. Hopefully this helped :)
@UmTheMuse 5 years ago-You cant not understand that this is not a case study about debt or a company in debt ?! There are 2 shorter ways to calculate your debts ( interest rate) . Either you research the Solidity and Liquidity grad of your company ( but that is Chinese for you) , either you learn the Annuity and compound interests formulas. This is discounting talking the future to present value . If you have debts you need to apply the calculator, which is on your online bank website. Because I see you confuse the cabbage with the pickles.
You could just look it up. It adds four more factors, one called SMB (small minus big) which is the risk of a company for being "small" (i.e. low market cap ~1B or lower), one called HML (high minus low) which is the risk of a company being "cheap" (high book/price vs low book/price), one is called RMW (robust minus weak) which is (counterintuitively) the risk profitable companies have, and finally one for CMA (conservative minus aggressive) which is the risk that firms that invest conservatively have. All these are tremendously difficult to calculate accurately individually, but the market as an aggregate of millions of investors gets those risks spot on in the long run most of the time (>95%).
Thanks for explaining Rf & Rm. I’ve been looking for a calculator that would calculate CAPM by just inputting the stock symbol. But using 3% & 9% for Rf & Rm make it easy since all investment sites give the beta of a stock.
Thank you for this perfect video! Could you please also make a video explaining the Arbitrage Pricing Theory and the Multifactor Model please? I will have an exam soon about those 3 and I don't understand anything from my investment professor :(
Halloo central nervous system listen up what he is saying: Beta is the relationship between INVESTMENT AND MARKET. MARKET BETA IS IMAGINARY 1 BY DEFALUT.
I learned more in these 5 mins about CAPM then anything with my investments professor
This comment represents me also.
Outstanding, isn't it?
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.
I to
me too, it's really way better than my text book
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 UA-cam as well.
Its amazing how these videos are so quick, concise, and easy to learn from
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.
this video was absolutely brilliant, explained in five mins what my lecturer tried to explain in 5 lectures
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??
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!
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?
Thank you for the video. The simplest and clearest video about CAPM.
A great resource for CAPM. One of the foundational concepts of our time.
I got no words. You explained it in a very neat and a short way. Thanks a ton Sir
Your work is still paying off !!! Thank you
What do you think of CAPM? Do you ever use it when valuing a stock? I often use CAPM in my Dow 30 Analysis Video Series ua-cam.com/play/PL7fralS8vIb5jGOwi2dCQ3iYC-AinxRtu.html
This was so much more concise and clear than my professor who spent 30 minutes talking in circles around this
The video has the most apt clear and detailed explanation of CAPM, you made it so easy Sir. Thank you!
absolutely amazing!!! so many things shown in really simple and understandable way! even if you’re not native speaker! thanks!
Loved the quick and easy explanation. Graphics are awesome
Your approach is really straight nd indept as well.
Loved the way you explained it.
Waiting for next video.
I watched this video 1st time and in 1st time your content and talking impressed mee.... This 1st time happening with
Sir, that was the best explanation, period!
Thank you! The link between CAPM and a DCF model now makes sense.
Excellent - well done. Clear, concise and authoritative!!!
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?
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.
So easy to understand. Thanks
This video really made me want to learn even more. Wish our curriculum was this interesting. Great Job!
just my gosh, who ever came up with all this stuff?!!🤪 but thank you for helping us non-financial folks to try and better understand it all.
the explanation in video is!! It's amazing and highly recommended to everyone!
Love the Boston Accent! I subscribed, helped a lot with my Finance Final!
LOL, you picked up on the accent. I try to mask it. and thanks! I'm glad you found it helpful
@@LearntoInvest When you said popular at the end it got real obvious lmao
Thanks a ton man. Absolute learning in just 5 mins. Thanks again.
I appreciate the clear and easy explanation.
Thank you for the detailed explanation!
Wow this was absolutely amazing thank you. Finally understand the bigger picture.
Thanks for sharing your knowledge. The video simple and clear. Very helpful.
great educational content and stock analysis on this channel - love it
You explain it better than my professor. I am both mad and impressed lol
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!!
The MVP himself. Thank you so much!
your voice is great. the explanation is great. the examples are awesome, simple but very effective.
Thank you for this! Very helpful! Hoping to pass my exam today 🙏🙏
So nicely explained
Thanks! Taking my Series 66 tomorrrow
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.
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. :)
I appreciate that 👍🙂
Good luck to y’all in college hope you guys prosper.
💯 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 ❤❤❤
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!
Perfectly explained thank you!
Thanks :)
i wish my finance professor had seen this video. thank you for your help! finally understood something in this topic xD
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?
@@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
Wow I finally understand that Discount rates can vary depending on the pricing model
So well explained. love the videos.
Thank you! All the other videos on this are confusing
because he is making it too simple... and this is the only thing you probably can understand
Is too simple a bad thing? How should I have complicated it to make it better?
Another great video!! excellent level of detail and useful examples.
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??
Thank you so much for sharing this useful data ! Greatly appreciated.
This is an extremely well done video geez thank you
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. 👍👍👍
This is the first one of your animated videos I've seen. This format works perfectly for you. The script and your narration read are right on. In the "live" videos I could sense your nerves, but this format lets you relax and get your ideas across.
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?
When YT videos are better than my paid Kaplan materials....
Thank you for this great content!
Love from japan
Excelent explanation please make movies on other topics of valuation
Wonderful explanation ! Thanks !
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?
Only helpful and useful stuff. Thank you!!
you need a patreon account dude. Good job as always!
That was clearer than an Ivy League Professor. Hold this sub.
Perfect!!. Thank you
Great material :)
Thanks! It's helpful!
I'm glad you liked it!!!!
Great explanation!
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!
Very helpful, thanks!
dude im clapping youre just awesome thank you
Thanks 👍👍😁
thanks, it was really helpful
Great video sir
In the end you said discount rate or expected return, are they the same? I know CAPM calculates the expected return of a security..
great explanation. if only my professor knew how to explain.
well explained, thank u bro
Thank you, this really helped
tq for the video
I love your voice. also superb video explanation
A didática é tão boa que consegui assimilar muita coisa mesmo não tendo domínio da língua inglesa.
Thanks..very informative
thank u very much short and clear
Damn, this was good🤩
very useful, thanks a lot.
super helpful sir!
Great video!
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?
Thank you!! ( Imagine I said it in Boston Accent)
Please make a video for using CAPM for portfolio.
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??
got it, thanks!
Can you make the video about Arbitrage Pricing Theory? I need to presentate next week but i don't know about apt
That’s a great idea, let me see if I can get one together fairly quickly for ya 👍😀
Can you do an explanation of DCF model for your next video? thank you.
Good one. I'll see if I can get that one done by next week. Thanks for the suggestion.
very helpful
Thanks for the video :)
Short and crisp!
Does it ever make sense to customize the risk-free rate for our particular situation? For example, if you're in debt and the interest rate is higher than the yield for 10-year bonds?
I wouldn't customize the risk free rate since the goal of CAPM is essentially to calculate the cost of equity. And we use the risk free rate to give us a baseline... Assuming we are using CAPM to help calculate our required rate of return, we take this CAPM calculation and apply it to a WACC calculation ua-cam.com/video/0inqw9cCJnM/v-deo.html that is where we can make adjustments for debt and the cost of that debt.
Hopefully this helped :)
@UmTheMuse
5 years ago-You cant not understand that this is not a case study about debt or a company in debt ?! There are 2 shorter ways to calculate your debts ( interest rate) . Either you research the Solidity and Liquidity grad of your company ( but that is Chinese for you) , either you learn the Annuity and compound interests formulas. This is discounting talking the future to present value . If you have debts you need to apply the calculator, which is on your online bank website. Because I see you confuse the cabbage with the pickles.
Thank you so much for your efforts with making these, Could you do one on the Fama and French 5 factor model?
You could just look it up. It adds four more factors, one called SMB (small minus big) which is the risk of a company for being "small" (i.e. low market cap ~1B or lower), one called HML (high minus low) which is the risk of a company being "cheap" (high book/price vs low book/price), one is called RMW (robust minus weak) which is (counterintuitively) the risk profitable companies have, and finally one for CMA (conservative minus aggressive) which is the risk that firms that invest conservatively have. All these are tremendously difficult to calculate accurately individually, but the market as an aggregate of millions of investors gets those risks spot on in the long run most of the time (>95%).
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??
Thank you !
Thanks for explaining Rf & Rm. I’ve been looking for a calculator that would calculate CAPM by just inputting the stock symbol. But using 3% & 9% for Rf & Rm make it easy since all investment sites give the beta of a stock.
🤣 Yu use calucator at that level of calcul ? 🤣 Are you coming from Paleonthogic era or mezozioc era ?
Thank you for this perfect video! Could you please also make a video explaining the Arbitrage Pricing Theory and the Multifactor Model please? I will have an exam soon about those 3 and I don't understand anything from my investment professor :(
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?
Please also explains APT & Multi factor theory.
Bêta = Cov (Rm, Ra) / Var (Rm)
Just a clarification 🙂
Halloo central nervous system listen up what he is saying: Beta is the relationship between INVESTMENT AND MARKET. MARKET BETA IS IMAGINARY 1 BY DEFALUT.
Thank u very much for good video clip.
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??
Sorry for my ignorance. But how did you go from 8.94% as the result of the CAPM to 1.0894^2. Thanks for this great videos.
up
Well,
8.94%=0.0894
Here, (1+0.0894) = 1.0894
And the to the power 2 is the "Year of cashflow"
Thus, 1.0894^2
Hope it helped
sorry, can you explain the part which is 1,000/1.0894^ or in my perception 1,000/1+capm^. What formula is it or how to understand it? Thank you
thanks for hte great video!!!
Banger!