The Stochastic Discount Factor (SDF) Approach and How to Derive the CAPM from It

This video tutorial, by Professor Dr. Markus Rudolf, Dean of WHU-Otto Beisheim School of Management, helps you understand the Stochastic Discount Factor (SDF) approach out of which all neoclassical asset pricing models can be derived. After explaining the SDF, we exemplary derive the Capital Asset Pricing Model (CAPM) out of the Euler equation, which is at the core of the SDF approach.
For more information regarding the Capital Asset Pricing Model (CAPM) check out this video tutorial also by Professor Dr. Markus Rudolf:
• Capital Asset Pricing ...
www.whu.edu/

[@lym3718]

This is pure gold. So lucky to find this video. Thank you very much for posting.

[@REcloudnest]

the explanation is much more clearer than my professor. thank you so much! please keep posting !

[@stefyuthechosenone1458]

Best explanation ever of the 02 families of models : arbitrage-driven and equilibrium-driven !!!

[@tomasnobrega8087]

Great explanation! Amazing video. The `big picture` in the beggining was superb.Thanks!

[@maryj2ndaccount886]

amazing video and great explanation! really helped me to better understand my uni lecture... thank you very much for posting !

[@farshadnoravesh]

Thanks for introducing the book of John H. Cochrane.

[@sidevans9697]

Thank you so much for this video. This is the context I needed before my university lectures begun the algebraic derivation of these models.

[@MrHugosky1]

This lecture was magnificent. Thank you very much in deed!

[@Grayhawk123]

This was incredibly helpful, thank you so much for posting!

[@liao9134]

I totally understand these whole thing. You are truly live saver!

[@davidduncan7587]

There is not enough money for familes to live on without learning this, this guy explains what risk is

[@stefyuthechosenone1458]

it explains how neoclassical economist tell us how we should price risk and no more when we are deemed to be Homo Economicus people, whom we aren't.

[@grsmith]

Excellent video, very well done.

[@jonnyh.2167]

Great video. Thank you for uploading!

[@TuanLe-eb5yp]

omg thank you professor ! please keep posting. This help me so much ! Can you post the derrivation of Black-Scholes please ?

[@yanfengli4821]

hope more videos about asset pricing theory, especially the option pricing in discrete and continuous conditions

[@farshadnoravesh]

very beautiful. Thank you so much.

[@mikiallen7733]

The famed Hakkanson paradox is as follows: if markets are complete and options are redudant, why would someone need them?

[@nichitamatei]

Oh my god... Writing on a piece of paper that's attached... to a WHITEBOARD? You are stochastically DOMINATING the turtles!!!!!!

[@achudakhinkudachin2048]

Yes, an incredible pedagogic performance, but why is it called Euler equation. Euler lived in 17th century, at the time mathematical expectation just came into being.