Risk & return

Risk and return answers one question: how much return should investors demand for a given amount of risk? Start with Beta for CAPM to measure the risk that matters, then CAPM: Capital Asset Pricing Model and SML: Security Market Line, Super Simplified to turn beta into a required return. The three APT lessons compare Arbitrage Pricing Theory with CAPM and explain systematic risk and diversification. New to diversification? Watch APT 2 and APT 3 first. Finish with EMH: Efficient Market Hypothesis and EMH: Expectations and Share Price.