Learning Outcome Statements PDF Download
|1. Capital Market Theory|
a. describe the implications of combining a risk-free asset with a portfolio of risky assets;
b. explain the capital allocation line (CAL) and the capital market line (CML);
|2. Pricing of Risk and Computation of Expected Return|
c. explain systematic and nonsystematic risk, including why an investor should not expect to receive additional return for bearing nonsystematic risk;
d. explain return generating models (including the market model) and their uses;
e. calculate and interpret beta;
|3. The Capital Asset Pricing Model|
f. explain the capital asset pricing model (CAPM), including its assumptions, and the security market line (SML);
g. calculate and interpret the expected return of an asset using the CAPM;
|4. Applications of the CAPM|
h. describe and demonstrate applications of the CAPM and the SML.
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
My Own Flashcard