Beta and CAPM (Calculations for CFA® and FRM® Exams)

Learn Beta and the Capital Asset Pricing Model (CAPM) step-by-step. We define beta as systematic risk, clear up common misconceptions (beta ≠ correlation), derive the two beta formulas (using covariance and correlation), interpret beta as a multiplier, and finish with worked examples. Then we apply CAPM to compute expected return from risk-free rate, market risk premium, and beta. What you’ll learn: Beta: definition, intuition, and formulas Correlation vs covariance and how they feed into beta Interpreting beta CAPM assumptions and caveats CAPM formula and exam-style calculations AnalystPrep's Concept Capsules for CFA® and FRM® Exams This series of video lessons is intended to review the main calculations required in your CFA and FRM exams. For Level I Video Lessons, Study Notes, Question Bank, CBT Mock Exams & More: https://analystprep.com/shop/cfa-leve... For FRM (Part I & Part II) Video Lessons, Study Notes, Question Bank, CBT Mock Exams & More: https://analystprep.com/shop/unlimite... AnalystPrep is an Official GARP-Approved Exam Preparation Provider #CAPM #Beta #CFA #FRM #QuantFinance #InvestmentTheory #ExamPrep #FinancialRisk #AnalystPrep #FinanceEducation