Security Market Line (SML)

[fsofowora]

It didn't show how to plot...?

[righpt2]

What is the formula for the covariance referenced starting at 6:00?

[dajieda0]

@righpt2 i want to know it as well......

[ljuarez714]

wow! im adding this one to the TutorMeTV site, lots of Finance students will benefit

[alithe1988]

i just wonder why do i not understand like that at lectures, they make it so confusing and complix, looking at this helped thanks

[masrurkhan]

is there any other way to create the optimal port folio using just two expected returns and two betas? or would i just have to do it manually?

[ahmershah1982]

great vdo, thanx for the lecture man

keep serving the ppl, good work

[Zinck89]

Thank you very much for this video. Imo you did a very good job explaining SML in just af few minuts. Thumbs up

[WHITESNOWSKY]

What would a combination of asset which do not sit on the SML imply

[tawukji]

not optimized

[WalterZelhofer]

@WHITESNOWSKY It would imply that the security is either under or overpriced. If a security is ABOVE the sml, it's UNDERPRICED and if a security plots UNDER the sml, and it's OVERPRICED. But don't forget that this is just a model, and Beta isn't very reliable...