Security Market Line

Thanks for the simplistic explanation.

Thank you!  Transparent clear!

Fucking glorious, quality work.

Nice video! I understood SML!

great video 
very helpful
thank you

Such a excellent video- you explain the security market line so well...Thank you!!

Why wouldn't you want to buy an undervalued asset/portfolio? Your return is higher than expected for the given amount of risk, wouldn't this make it more attractive to investors? Any help/explanation would be appreciated - Confused university student

clear and to the point.big help, thank you

Gem of example and explanation of what is often a complex and unnecessary mystery in finance classes! Bravo!!

really well explained! thank you!

Best explanation ever

thanks for a great guide ..

I thought Beta was a slope; is that for the CAPM formula? Or is the CAPM formula the same as the SML formula. Thanks in advance.

Excellent video, explaining SML.

What about the shifts of the SML?

Excellent video

If an asset is priced above the SML, and thus undervalued, it should be bought? and If it is priced below the SML, and thus overvalued, it should be sold? Right?

thanks a lot

Thanks alot,much appreciation.

This video is extremely helpful. Excellent explanation!

thank you for the great lectureSML  pass on the Tbill and S&P500 when we  draw it on the graph since Tbill's beta is 0 and S&P500's beta is 1? or we have to choose the line passing on many portfolio most on the scattered graph?

Why does prices and returns move in opposite directions? I understand that if an asset's expected return is above the SML, it is undervalued. But, investors will buy up this asset and the price will increase and the expected return will then decrease; thus bringing the asset's return to the level of the security market line.

Why does the expected return decrease though? After spending some time thinking about it, I came up with the following: Expected Return = Dividend Yield + Capital Gains yield. If the price increases, the dividend yield will decrease because the bottom of the fraction gets larger; thus decreasing the yield. However, the capital gains yield will also increase because you are receiving capital gains because the price went up. Therefore, the capital gains nullifies the the decreased yield. The return then does not actually decrease. So my thinking does not make sense.

Can anyone help?

Very good explanation ! Could you make an another clip about estimating the beta faktor?
Thanks ! Greetings from Germany

are we comparing the expected rate of return calculated under capm Vs actual return to determine whether the security is under priced or over priced. some defined it as difference between estimate returns and expected return under capm

If the beta is missing and the only given are E(Ri) & Var(Ri) how will get it.

Thank you so much for such an insightful video.

Hi Ronald, I have a question for this. Is the beta a result from regression or you calculate it based on the covariance-variance formula? Thank you.

You are amazing! Thank you.

Fantastic presentation

Fantastic! Thank you!

This video helps me a lot thank you Ronald!

Excellent explanation of SML! Thank you!

Very very very helpful!!! Thank you so much!!!

No clarity voice and under ursu tag is covered the graph

You are amazing! I loved this tutorial! it was exactly what I wanted to learn. Not many explained the stock value using SML properly!!!

Thanks for an incredibly well explained video!

Thank you sir

Fantastic explanation by u. Other are creating the hell outof this complex topic. I will recommend only your videos to my cfa pursuing friend's. 😅👍👍☺

Tesla: Hold my beer

Thanks for the precise and concise video.

I is a beautiful sharing. I finally got it

thank you so much sir！

Really really amazing work, thank you

I appreciate u.i have learned a lot

What's means that the slope of SML is negative?

Sir stocks that are undervalued giving higher return relative to the risk i’m gonna take, so my question is if i m getting higher return while taking a lower level of risk isn’t is good for me? Then why this particular security is considered to be undervalued & why i should not invest in it?