One thing that i dont understand very well, why you need so big returns with this risk? in the same way that can give you less than you expect can give you more, and if you are a diversified investor this divergences go away. why you need such a big returns?
Cosmo Gamer, the standard formula is Risk free + Beta x (Risk Free - Expected Return) What the professor did was simply subtract what is within parenthesis and therefore abbreviating the formula.How? For example, imagine your risk free rate is 3% and your excepted return is 8%, the premium ends up being 5%. In this case, that is exactly what the professor did, he subtracted the risk-free rate with the excepted return. Good luck with your studies!
You can see the professors desire for finance , it's truly captivating hearing him speak .
Amazing. Thank you! so much for this online course.
Professor, you're amazing! Thank you so much for share your knowledge with us
The assumed knowledge as a precondition is quite advanced which is great! So far the entire delivery of the course is great! Thank you soooo much. A.
Thank you soo much for these videos. they are very very very helpful
This is so clear, thank you so much for uploading
Just Wow . Top Class ! He is just a amazing professor . Thanks sir
Thank you for your lectures..
Very helpful. Thank you!
woow i mean this connections of the concepts is just magical
Thank you professor.
Where can we get the slides for these short sessions? They are really crisp, clear and perfect!
One thing that i dont understand very well, why you need so big returns with this risk? in the same way that can give you less than you expect can give you more, and if you are a diversified investor this divergences go away. why you need such a big returns?
At the start of the video you said, beta is just a number, but at 14:30, you say beta is a range.
Does anyone have insight on the accuracy of the Jensen alpha when the R-squared value to the index is very low (
Application test: Analysing the Risk Regression --> 19:56 minute
can beta be neglected when evaluating projects ?!
No. You need expected return to evaluate projects and beta is required when calculating expected return.
Novice finance student here: I am having trouble seeing where he got the risk premium of 5.76% for Disney, where did he figure that percentage from?
@JOAQUIN ULLOA CORREA thanks
Cosmo Gamer, the standard formula is Risk free + Beta x (Risk Free - Expected Return)
What the professor did was simply subtract what is within parenthesis and therefore abbreviating the formula.How? For example, imagine your risk free rate is 3% and your excepted return is 8%, the premium ends up being 5%. In this case, that is exactly what the professor did, he subtracted the risk-free rate with the excepted return.
Good luck with your studies!