@ hack eae Medil + gs Bic! Rake Stag oe pL _ —— Reker fre da mn aud buck pee Peeler e. Sa Paueet only tas notcky asatti after pagfortia. boyyous ‘monty us Mak fate yao. "ree amount Mruected Uy frarceeol HsOu punted fund boryowed Huds) | pou 1 > Te | OAKow 17h i | for, us Retom—> ST! ay man + Ye hide, ree eee ont ky at A aud ow Puak prot adh Ao Te Sure > muy C-%)% uct tu porfol nly Rebudln —— es ous aud erkially borrowed monty qracmend Heroigh — borvewed frwols (tots wold by vue coker “HI nb ect (net schoo nugetiut oo att tu dant oy proportbn Pats bed Ua 08k fe aut would ktoow nagabive “ee Rebvtn ou Wr 204 Re by pl heck LR 3 Fropertion ef A Proportion of ep — Tp fertfole) of (trwuqyhrtiouc) ° 4 oO <¢ as we ecu t 0:2, i How of broad . cs 24 eraser pet ie Risky od oS 4a We ool oe v Oe oy qe pottfelie, cue fsb pul og NWY otal return? axage! 4 0.2 Ue V4.2 aul doled visk & | al oO 12 oo wet | tevatled in f £2 22-8 | msn une risley easels 4.4 2s.¢ \ 4 Wutr a 16 aay | RIK aud Peron borrowed | “aed cas forttinr be eet 8 . 3812 J} euhawed white boned j s 4 funds ons , CML (cupttel mkt th uased etSML Suis a ae : ‘ . tl oF nto ge 2 ous of CAPM ken | Aaauunh do , Os adie isk fl ditvertifinn, SNe Homathor Coat ‘ 3 wu ie eye a cowpea atid > all vatorut fvealort atuc dusk ametet Me B waly oo all dows qcetec te pe relevant luge, ‘ SS Mankat in perfect (fruaatoree cannot fptuawee ER) Ry t(ERm~ Re dBi > ack deere Ths rakt. pm'ce) ~ i Pie t wu ayiaiely dividthle, ecu tape Os oa] > AL tn bepobes/at Ask yree vale aypleaalie isk Of ? er jo. BODIE Ulevt sats av allowed e earitg pote tay, > dengde prwed frvtimtt her con. EK 7 Retr om wkt i ‘ : x Connelrti 9% im ey KA cowbinahon of naarket jee (risky aut) pi a a aye aud silks pre att calle so posal 7 caepeuutoe) . seperation Loren. Bo ( Bes 2 CAPM wth OL OMe > Re - % + Rm Ry Joe Wat APM ipcek puers CM ) SML Re» Retuorey oprciert pertfolce € > officieut portfolio. Relisun Ry > Setereept of CML (Russaxd fer wating ) F Ren- Ry Reward pen anit of ek (slope of CHC) £ fee, Rome part erate) s ome pet Risk oe aduume Hat markee Bid). YL tu porifotie U offrrcar ' je dar rebwur then What was / expecta CAPM, tt nuans portfelia of aocctty ts eurry elute oud people locus :, , AU! eff It ustteh put foe defer Lift of M amt portfolio haut a downward prrcdurs ov Combliation of wioky ke vik pee aaatt. fruowe rik pr’. pihivately tt ‘ oa onereina yetttin would rae OME ib ter nelabionadletys S]t neotwru oud total vith. equal toto return ot per SML .fh Aigfetuntt ta Het wep teded ret ad saguined aqulctbac un elias tw called ye BG de CAPM, 0 & nob yet when market hder ts 0, eK = Ete) = [& + (ER) Ry) ‘} jit tte iia? didauee blw SML andl feccaily witch Ute ove tk, oho or below tt. wv +0 [ conneotly priad acted | HHO [Ua aboue smi, wuteyprteed ] <0 [ve heloco SML, evexpreed | @) E(Ri)—> sapeeted Returur om accurdty oa poxtfetco: + [E(hm) 8%] Bi? Regubred fete Rekuren (CoD) B chawgss > mount bong Hil ate ie Te be aa pik Prennturn clea ton te Thee Hoe we ancy oe ssp enn ae ae: et dialog] seouorey ate Chrauypes , io eae : tate wb yd nuoaral row would affect Hes cabo pur alla yd] 0 wud is Bi pe vale faster abifh On ah yet! He pick pretium wad cltiinrokcly slope and ; suc ae NOTE. Th eats ier, oy CAPM aut non peableh’c aud M4 we > Plus qe guenally (re pete ty # ities eecen ontereptOtd: yay pelea alte ot Free, we would Baten > petwoen, soe sane gee bet ul Pa SML. pie pe vali OF DOU Tah, as dela bane ne ar ated Saal uighan sete port folict. beak ake] New moar Biba . eal whlch as ue yisk we angie) me rlimeynermaears vest ae qulatcona Steak |e es fee b037 2 cate witte we rat pee as [ee madetel] wet PE fe AEE, | orn shook vi 4 lie atid B eeortingly ) : re “ Not au eppiccut a me te BE wtee P= Of ies conus > Return Cocpecled) Ws wnert an sa ei [aw'ts 0 corvdation)@ Booming awd Lancing at _Aasunep hi ou x See ied = ON > factor AUutitivitiea a. o palated ® EMpECHA ro,: a 48 ty ‘. fick ——> cow ofifue masckoft k ue noe < te wy pusters diel Wermeginrea,, for pel exprelabiovs Be (Am: Re? 2B (bm-&6) 9 unio Heed dt er a ap, 7 Mop, amet a! fied hee. oc fer prep (e ere wiak comment ber WV 5 Rik frue Leading A ” fi [oe fh usthive Riek pus borrowig - C Pes eh fa £ HE Dae] Ne mik pre aut — Sar ad nto beta Modol. (3) A Relixwd alio depuad ou veniables Crone ee aga fer 5) wok rusher yalio oud poe ee rek se: > CAH vs forwand Jookedeg macolel fiat nuzal 0 tatinad fia marke beta] ReT equation ER; = Ret Arba tArisde b valuation Bla vay le Dfperad Crreamateucet) RS = historical Seta Wlnot stab’ . i 4 dedivit ean cou Ketiorel > Madividuel bale (Leishricl) ant net staking eae aig tr—- expected yep = Companion de portfolio eka big - renebow couffictet Bee trons “evey ote patti troltx model addituntt a Lintar funedion, Foe )] | tectord. ( cack. te a Louree Ryo felt whim by aut 0. Fee ea tate Be kore aud won marke frfuamey Fxoat — Cibt seeutttes fo mow togeditr. Ree apt halt Ont +-.---by ti G4; Retour om ytocks i tan all trdfeue fat Ovalt. ; bij > Reaction couppeind alles Acaplet to a wintterg hes Chaciy in quedo 4. es D> Ve jh fader. fs ttre ene OO EE Ei oe euut ‘ se var taki : fe panes ge ca Mn pestle Hh, not fired Le rag a ge eaapo no x fox} fotio Expseted Pete 64 Ria A iz IC ' 0.6 8 4 ve ! ¢ 10 03 02 R= 4.95 + 5by +375 bP. | Porifotic * Br dibi dt te Dials teeue’ ty AL heen ts iy toc <7 'O Mee 8 Cet OS Te HP Ls — & Fomor ett Fo2T. +6) aw Soltog 0O~4® ne FE ri %~ 3 es pee at meatier. Rp y bess Opa Pee XiRe bet 2 = xiby ber 2 = Hi DID yoo nus portfede §s0/te expleled Rekuus o} IS Kod arr ot Ht an flow Y Hurt Dito eee oe We bast fo eer ai opporkucly er wat am compariton do Helo N ot gy AB, E Be equal proportion. Legge LO) + flos) +4 (23) 2 0-6 1 AY “ bey S 6% ©]. Sp, = L(t L(a) tfi0.r) = 06 [ik w bebe sesttivtty a tane alia a Res 4 (1s) + Zuyt ie 132 [Bo] D B® bow Han €] for saw saptemalte nik, eb fuctat : nf ey fF 4 See sane ” 4 et oot cffeed by 9 7 ry 'e ve theo. Seri ee i f portfelic should b¢ anus | nek las prop>a foots Rawk tpertfeiok, 0} sblaanful Radio Ro- & oe yetio cat be , sintlay 40 CML Te Wh ian ayplabew bam 9” R te woud pou AOtd coreelulon. Kea RE Tm Tits can be ead for peda) verted port fetiet) ® Fruprort Bolve Rp-@ This Valeo Alould wat de fasted Hensel TT erect [esx qe Bee Se toga Hes apt emnlt mek ouly. oe alt (ar fo SML Rm-R, - . eS Rom es (Aree int }) GB Teron’ Ad pha. Aivwilas, 40 CAPM equation t Cp [ Kp = Xp tet Blt Fe Uleepr FF Xp aud tor Kein pefok yum vit expect reo = vertical etilenes frowm Saye of ret we: ers mut PrACg [Eb i tty parfermnacsee of pertfoto orks paises to tha cequired +: eS aR ae ee Ow +e (aod panfer nacet) HK lower er —VE (poor Maan i mkt portfolio ) x ok Tryynor Reto ofwt a puloti ge Tendiow ae ~ r abso tide, ee ge Rambirigs ab pr Ul ak Tre es ated ohne Wea wi aes Haat oad ponte [ages ee om cortadh Cates bolt Hu YES a vot Sehewhical ten . ay & fae as per trudtord portfolic, me , ovtflio 7 ‘ more sutted 7 cake aes a reymor ako ue fee a diuvaihd povifows 9 Marte valid vw (gas sated fer aniall oud Trt aus Cowp ard wh He beuel mark BK coljubed erga pith CM) nd SML te Satebious> cobteetint Suvshutrat deus, oo 3 Hictory of Mekal fends dates hack te UTIY. Proked up pact frome 11900 es Eunopr mrad 1990 ds 05 > first Mutel fraud dr Julia y UN 1963 (datitatty only publle drclers er allowed to ent ME Market tut data 1993, put actor Wo! albe Allows to euley Ha mkt.) 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[usually de pay comm chet | 3 iain dood [ Wher yeu taker, ia Z Vigtar oy aa sega) OFF Load [ltr yee elt ev sel, you get Le at] | ga pex fad obj Letint. 4 Greate | e4itty erieated [laps Sppreciats on] 2 Jocorne | Dedt ovituded [NAV is subject to ded Rake R&k] Botanced fevds ony rake fouths [WAV stable] /n: lock ba 16 dep» (Rigulatid bg ae) 9681) Hosting Rate rh Luvasne to pre atk — uke Refi Bangs> , He coupon vel adj] gilt paws (UAV yl Atustea clue te thang in dak Rake Jude farslt (wav mdsiors te age” J Past fatal MG vfs REITs [REME = oli dol, jewa wn Real eel at ot cnet ey ig 8 ed mately ats BS wrest in yeedl eabets rehahed access ea] (inate Ho OH) ging y iuely ak Mi nuk dy vel weak amin doy invatd in le ic Sen i is wevplded nested prpes + REMC faeok co REITs alse Qe fer bel > Tradt om Steck ech : 4 4 «lapping ml, 3, Tavike ( a Vausa treat 1 : Tal ee wou Li vet &