What will we cover? In this lesson we will learn about the CAPM and how to calculate it. The objectives of this tutorial is: Step 1: What is the CAPM? The CAPM calculates the relationship between systematic risk and expected return. There are several assumptions behind the CAPM formula that have been shown not to hold in reality. … Read more
What will we cover? In this lesson we will learn about market Beta with S&P 500 index, how to calculate it, and comparison of calculations from last lesson. The objective of the tutorial is: Step 1: What is BETA and how to interpret the value Beta is a measure of a stock’s volatility in relation to the overall … Read more
What will we cover? In this lesson we will learn about Linear Regression, difference from Correlation and how to visualize Linear Regression. The objective of this tutorial is. Step 1: Similarities and differences between linear regression and correlation Let’s first see what the similarities and difference between Linear Regression and Correlation is. Similarities. Differences. Step 2: Visualize data with no … Read more
