Capital market line (CML)

[MegaRickyrubio]

why is the CML linear ?

i understand how we get to the mkt portfolio and the rf point but why are alle possible combinations of nkt portfolio and riskfree portfolios linear?

[vivienneng315]

how do you find the % in Asset A? The market portfolio in Malaysia. Please advice :))

[sebaz07]

Thanks!!!!!!!!

[wusnoOk1991]

but how can you get the market portfolio?! and how come that there is a systematic risk?

[beesleeper]

The bible clearly states we should be scrapping capitalism and replacing it with socialism:

"The land shall not be sold for ever: for the land [is] mine; for ye [are] strangers and sojourners with me." —Leviticus 25:23

[wendy2212]

Where can I get a 7% riskless investment?

[symkiteboarder]

@wendy2212

@wendy2212

You can get a 28% "riskless" investment from a Greek 10 yr

I wouldn't put all your money in it though LOL!

[gengarnation]

doesnt variation = standard deviation squared?

[skythra]

@gengarnation Standard deviation is the root of Variance. Or: Standard Deviation squared = Variance

[theartofluv]

is anyone know how to input live stock index price (S&P500) into excel and let update by itself every time i open it. Thanks

[piggybabyness]

He is wrong about the red line... its only Asset A and not Asset B

[bionicturtledotcom]

@piggybabyness yes, agreed, i mispoke: the red (non efficient) curve segment is long A & short B. Thanks!

[joecrap12]

Incredible! So much better than my Investment Management professor!

[sjkdec18]

For the sake of clarity, the highest Sharpe Ratio point on the efficient portfolio frontier should be where the CML and the efficient portfolio frontier intersect, correct? And shouldn't that point be the left-most point on the efficient portfolio frontier curve? I ask b/c you graph doesn't look as such!

[KostjaMRH]

Why do you call it CML instead of CAL here ?

[zynjulia]

i think this is CAL not CML

[bionicturtledotcom]

@zynjulia Notice it's labeled market portfolio (two-asset portfolio is illustrative proxy for market portfolio)

[hoomun]

@zynjulia watch?v=tSHs8YwWOHc is SML

[teddychase]

Can you show me how to draw the CML and market portfolio in excel?

[ankurcsrivastava]

great explanation..

[UtterlyButterlyfull]

You are really Brilliant. Such a nice style of teaching. I love it when you try to remind previous things you have told before or when you tell all the possible terms of the same thing. Thank You sooooo much.

[bionicturtledotcom]

@UtterlyButterlyfull you are too kind, thank you for noticing that i do try to use synonyms whenever possible. It takes a little more preparation but I think this is one of the stumbling blocks in finance that, in some cases, makes an idea seem more difficult than it really is. thank you

[monsieurdiarra]

This is very clear, thanks a lot! So helpful!

[aoidja]

Very good explanation, but I think you made an error in the presentation at roughly 4min 59seconds where you say that you are "MIXING IN ASSET B" as u move left on the curve. and at ~ 5min 14s when u say the red part is entirely asset B.

Instead, it appears that the curve at the lowest Std Dev is 100% asset A. and the red part is negative asset B and >100% asset A. Which means that you are mixing in asset A as u move left from the most extreme right point of the curve.

[aleeypc]

You are just awesome, better than any professor in our university

[luiszimb]

This was pretty good thank you!

[valtage]

very well done.

I just realized my lecturer fucked it all up :)

[adeeleo]

amazing!! can't be understood better than this..

[1988maple]

cool! u explain better than my lecturer!

[adeeleo]

Excellent work! thanks..

[shoexy]

Well done !

[TI555]

Great video. Cleared up everything that I just read in my textbook.

[osama2210]

thank you very very much for this video!

[sebbl99]

Sir, you are simply "the man", I am gonna tell my university to implement ur videos as standard lecture material for all finance courses

[fistylo]

great information .thank you