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 TH-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 th-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. 👍👍👍
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?
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 :(
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!
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.
This makes it seem like a beta of 1.0 means that the stock is perfectly correlated with the market. From my understanding, this is misleading because beta is the volatility (not correlation) - meaning, an asset with a beta of 1.0 has the same volatility as the market, but could theoretically be totally uncorrelated. Am I correct in saying this?
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%).
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?
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 TH-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??
A great resource for CAPM. One of the foundational concepts of our time.
Thank you for the video. The simplest and clearest video about CAPM.
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?
This was so much more concise and clear than my professor who spent 30 minutes talking in circles around this
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
Thank you! The link between CAPM and a DCF model now makes sense.
The video has the most apt clear and detailed explanation of CAPM, you made it so easy Sir. Thank you!
I watched this video 1st time and in 1st time your content and talking impressed mee.... This 1st time happening with
absolutely amazing!!! so many things shown in really simple and understandable way! even if you’re not native speaker! thanks!
Wow I finally understand that Discount rates can vary depending on the pricing model
Your approach is really straight nd indept as well.
Loved the way you explained it.
Waiting for next video.
Loved the quick and easy explanation. Graphics are awesome
Thanks! Taking my Series 66 tomorrrow
I appreciate the clear and easy explanation.
So easy to understand. Thanks
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 th-cam.com/play/PL7fralS8vIb5jGOwi2dCQ3iYC-AinxRtu.html
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.
Sir, that was the best explanation, period!
Good luck to y’all in college hope you guys prosper.
the explanation in video is!! It's amazing and highly recommended to everyone!
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.
Thanks for sharing your knowledge. The video simple and clear. Very helpful.
Thanks a ton man. Absolute learning in just 5 mins. Thanks again.
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?
Thank you for the detailed explanation!
So nicely explained
Thank you for this! Very helpful! Hoping to pass my exam today 🙏🙏
The MVP himself. Thank you so much!
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!!
You explain it better than my professor. I am both mad and impressed lol
Wow this was absolutely amazing thank you. Finally understand the bigger picture.
This video really made me want to learn even more. Wish our curriculum was this interesting. Great Job!
your voice is great. the explanation is great. the examples are awesome, simple but very effective.
Perfectly explained thank you!
Thanks :)
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
great educational content and stock analysis on this channel - love it
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 👍😀
That was clearer than an Ivy League Professor. Hold this sub.
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?
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!
When YT videos are better than my paid Kaplan materials....
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.
Excelent explanation please make movies on other topics of valuation
In the end you said discount rate or expected return, are they the same? I know CAPM calculates the expected return of a security..
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 👍🙂
is there a video about the arbitrage pricing theory
?
💯 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 ❤❤❤
So well explained. love the videos.
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
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?
A didática é tão boa que consegui assimilar muita coisa mesmo não tendo domínio da língua inglesa.
Please also explains APT & Multi factor theory.
Can you apply CAPM on ETF’s not just individual stocks?
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. 👍👍👍
When did we start using the 10 year note for the Rf? I thought short-term treasuries were used for the Rf.
Hi great vid man, 2 questions...where did you get the $1000 dollars from as your expected cash flow? and why would you expect $1000 in 2 years?
Its an example, the expected cash flow can be any number
Only helpful and useful stuff. Thank you!!
This is an extremely well done video geez thank you
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?
great explanation. if only my professor knew how to explain.
Thank you so much for sharing this useful data ! Greatly appreciated.
tq for the video
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?
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
Thanks for this content. Have you uploaded the Arbitrage Pricing Theory video?
great video, not sure where you take the $1000 from the second calculation from?
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?
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.
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!
Perfect!!. Thank you
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??
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?
Thanks! It's helpful!
I'm glad you liked it!!!!
Thank you for this great content!
Love from japan
This makes it seem like a beta of 1.0 means that the stock is perfectly correlated with the market. From my understanding, this is misleading because beta is the volatility (not correlation) - meaning, an asset with a beta of 1.0 has the same volatility as the market, but could theoretically be totally uncorrelated. Am I correct in saying this?
thank u very much short and clear
Bêta = Cov (Rm, Ra) / Var (Rm)
Just a clarification 🙂
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
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!! ( 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??
Great explanation!
got it, thanks!
dude im clapping youre just awesome thank you
Thanks 👍👍😁
Short and crisp!
Can we get that video on the APT?
you need a patreon account dude. Good job as always!
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?
very helpful
Does the CAPM make sense in a crisis? Aswath Damodaran valued Facebook a few months ago, and look it it now.
Very helpful, thanks!
thanks, it was really helpful
well explained, thank u bro
Thanks..very informative
Great video sir
should the time frame for the rater of market return be the same time frame for the risk free rate
Great material :)
Great explanations thank you
When can we watch your Videos about Arbitrage Pricing Theory and Multi Factor Models
Very Good Point. I've got them in the queue. I'll let you know as soon as they are ready.