How to calculate returns per unit of Beta (β)

This video covers a challenging finance exam question combining concepts from portfolio theory and the Capital Asset Pricing Model (CAPM). The problem involves calculating the reward per unit of systematic risk for Meta Platforms (formerly Facebook) within a portfolio containing both Meta and Apple stocks. Key concepts such as expected return, risk-free rate, market risk premium, and beta are used in the process. The video walks through step-by-step calculations and provides a comprehensive understanding of CAPM, including solving for the required return and portfolio beta. By the end, you'll feel more confident tackling similar questions on your exam.

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How to solve for the Risk-Free Rate (Rf) using CAPM

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How to calculate the beta weight of stocks in a portfolio