Portfolio Theory and the Capital Asset Pricing Model

Firms hope to get money for their investment decisions from investors. The latest have to decide how to maximize the returns they get while simultaneously minimizing their risk. This lecture will introduce two key concepts of financial management: Portfolio Theory and Capital Asset Pricing Model and will discuss how the CAPM gives us one of the inputs for NPV, the discount rate. This lecture was recorded by Raghavendra Rau on 13 November 2023 at Barnard's Inn Hall, London The transcript and...