Paul Wilmott on Quantitative Finance, Chapter 18, Capital asset pricing model

In chapter 18 I learned about the capital asset pricing model. Every asset has a drift alpha, systemic risk beta, and some diversifiable risk. If you like index funds you are a fan of beta, if you like hedge funds you are probably more a fan of alpha.

Category:

Education

Tags:

• math
• finance
• quant
• capital asset pricing model
• capm
• portfolio
• risk
• return
• covariance
• alpha
• beta

[TheGamma52]

Isn't beta a measure of systematic risk? Systemic risk is something different I believe.