NISM 21B Portfolio Managers Exam Notes

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  • Security Market Line (SML): Plots return vs. beta.
  • CAPM Formula: Return = risk-free rate + beta × market premium.
  • Market Risk Premium: Market return minus risk-free rate.
  • Diversification: Reduces non-systematic risk.
  • Market Portfolio Role: Benchmark for systematic risk.

NISM 21B Portfolio Managers

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