Prat Start 2 Portfolio 24 in. x 36 in. x 1 in.

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portfolio management risk and return part two in this reading we will talk about the capital market theory and the focus here is on coming up with the capital market line we will then talk about the pricing of risk and the computation of expected return the idea here is that when investors take risk they obviously expect a return and the return represents the price of taking risk obviously investors who take on more risk would like to get more return and that's what we will discuss in section 3. then in section 4 we will talk about the capital asset pricing model which is one of the most basic methods of taking risk and a particular kind of risk and based on that risk coming up with an expected return then we will go beyond the capital asset pricing model we will talk about limitations of capem as well as some extensions to cap em section six deals with different portfolio performance a
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