Security Market Line & Capital Market Line | CA Final SFM (New Syllabus) Classes & Video Lectures

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Security Market Line (SML):
When the expected rate of return as per CAPM is presented graphically it will be a straight line sloping upward.
Lambda (λ):
Lambda indicates a reward-to-risk ratio where the numerator indicates reward in the form of market risk premium (Rm - Rf). The denominator indicates market risk indicated by standard deviation of the market (σm).
Capital Market Line (CML):
When the expected rate of return is related to absolute risk of the stock, i.e. with the standard deviation, and presented graphically it will be a straight line sloping upward.
Note:
On comparing CML with SML, it is observed that:
CML is based on Standard Deviation (σ), whereas SML is based on Beta (β).
CML considers absolute risk of Stock and Market (based on Standard Deviations), whereas SML considers relative risk of Stock with that of Market.
In CML, correlation between the security and the market is not considered, whereas SML considers correlation between the security and the market. (SML is based on CAPM).
If the correlation between security and market is perfectly positive, (i.e. Corxm = 1.00), the conclusions as per CML and SML will be the same.
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[@sajidekram3]

Million dollars lecture like a father teaching his child. Books confuses But Nikhil Sir clears our confusion. I must say what I was striving to understand since last 2 years my all confusions are cleared. Doing a great job to make availability of super excellent quality lectures.

[@kartikmohan3227]

simple, straight, point to point explanation. Job well done Mr Nikhil
Thank you for your video

[@lavtibhumi8012]

At 3:56 lambda
At 7:44 capital market line
Thank you very much sir

[@Maqsood-wg4mp]

No one is like u I am very impress with you

[@recoveryprofessional4683]

Thank you so much sir... I can't explain how much I'm thankful to you

[@NikhilJobanputra]

You are most welcome

[@shitukanjolia2427]

we can also reach to conclusion that CML assume perfect correlation between security and market returns...

[@rastanurahrt9686]

Content presentation was quite rich, Well done.

[@sridevikrishna8877]

Sir am in chennai, am not doing CA working in BPO but your earlier videos about derivatives are super and excellent. but the next videos are in hindi I am not able to understand. Please continue in english sir, it will useful for all the regional people who doesn't understand and I will try to learn hindi ASAP.

[@dharmeshnahar7788]

Main haryana se hy,manne angrezi main na smjh awe h.

[@sjc8982]

Perfect...explain in simple words

[@nitikachoursiya1201]

Perfect teaching method nd to the point
Great job sir

[@vadlamannatisreedhar6446]

Concept 14 SML _ Security Market Line / Concept 15 - Lamda/ Concept 16- Capital Market Line

[@alappuzha9]

Your 1 lecture = 100 other lectures .... namaskaram my Fin Guru

[@sidhantjain2581]

Sir u have explained very nicely

[@dr.meenakshikumari8735]

sir please will you make a video on the topic - expected rate of return vs required rate of return. its better

[@amandhimaan9901]

Very well explained, thank you

[@journeytomagicallamp7435]

Very helpful video .

[@charanreddy7780]

Please tell me in English u r vedio s are so useful sir.for those who prepare own

[@alokraj8691]

Bookmark for me:
For revision purpose 9:00 -10:00

[@Jalalwarsakian345]

sir if there is no cost of debt given in a case so how can we find it from balance sheet or other ways kindly

[@SherAli]

Hello sir.... From where I can get text book which your telling

[@shalini3158]

Sir please explain characteristic line too

[@edgyvenom153]

Aik he baat hai

[@jaikaur2322]

sir please explain what is variance in portfolio

[@rpatidar68]

You always perfect 👌

[@irfanhameed5454]

Outstanding

[@TUSHARSHARMA-er5ju]

Sir what would be the cost for complete SFM video lectures for new course along with theory part.

[@NikhilJobanputra]

Hello Tushar, Can you please call me. Direct Line [phone]
I will provide you all the details.

[@vinishagupta6004]

Amazing!.... Thank you sir! :)....

[@sakshamkhatri24]

Very helpful

[@pawankumarsingh2114]

great sir

[@rakhikrishna2199]

Sir pls do in English u have explained excellent way in shapes model

[@MeedawryAbedin]

Thanks teacher

[@soniasaini8761]

Nice video sir 👍👍☺, please can you tell me the author of book name which you used🙏🙏

[@NikhilJobanputra]

That book is written by me.

[@soniasaini8761]

@@NikhilJobanputra , pdf is available Or not?

[@rajdixit3165]

Superb

[@irfanhameed5454]

Kamal

[@manjun5056]

How much your sfm video class cost sir

[@NikhilJobanputra]

For that, you need to contact us at 7400448022