Finance 4335 will not meet in person tomorrow, Tuesday, March 19, due to ongoing health-related issues in my family. Therefore, tomorrow’s “Capital Markets Theory” lecture will be delivered asynchronously. This lecture explores capital market theory, transitioning from our previous (Thursday, March 14) portfolio theory lecture. As in last week’s asynchronous lectures, class participation credit will be awarded to students who write and upload a lecture synopsis to Canvas.
Capital market theory examines the equilibrium pricing of individual securities, a concept better known as the capital asset pricing model (CAPM). This session mainly draws upon the lecture note “Portfolio and Capital Market Theory,” the linked for which also appears under item 10 on the course website’s lecture notes page. Toward the lecture’s end, I discuss the Capital Market Theory Class Problem, available at http://fin4335.garven.com/spring2024/capmktproblem.pdf.
This lecture is available for viewing at https://mediaspace.baylor.edu/media/Capital+Market+Theory+Lecture+%28March+19%2C+2024%29/1_pkvgnk98.