NISM 21B Portfolio Managers Exam Notes

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  • CML Formula: Combines risk-free rate, market return.
  • Systematic Risk: Non-diversifiable, measured by beta.
  • Non-Systematic Risk: Diversifiable, reduced by portfolio.
  • Capital Asset Pricing Model (CAPM): Relates return to systematic risk.
  • Beta: Measures asset’s market sensitivity.

NISM 21B Portfolio Managers

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