Ch 12: Return, Risk, & the Security Market Line

About This Chapter

Learn about the evaluation of assets based on analyzing probable risks and returns. Our entertaining video lessons offer brief but comprehensive explorations of the topics presented.

Return, Risk, & the Security Market Line - Chapter Summary and Learning Objectives

Our experienced instructors show you ways in which investors look at assets to determine if they are desirable for portfolio inclusion by estimating risks and projecting likely returns. Use the written lesson transcripts in conjunction with the videos and lesson quizzes to enhance your comprehension and retention of key information. This chapter will introduce you to the following:

  • Portfolio weights
  • Return and variance
  • Expected and unexpected returns
  • Systematic and unsystematic risk
  • Systematic risk principle
  • Portfolio beta
  • The security market line

Video Objective
Portfolio Weight, Return & Variance: Definition & Examples Learn about portfolio weights, expected returns, and variance.
Expected & Unexpected Returns on Assets: Definition & Examples See the difference between expected and unexpected returns.
Systematic & Unsystematic Risk: Definition & Examples Study the components of return, systematic and unsystematic risk.
Using the Systematic Risk Principle & Portfolio Beta Explore the systematic risk principle, measuring risk, and portfolio betas.
The Security Market Line: Definition & Uses Discover how to relate beta to the security market line to aid in asset evaluation.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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