How to price stocks with the Security Market Line (SML)

Learn how to tackle a common finance exam question: calculating the current price of a stock using the Capital Asset Pricing Model (CAPM) and the constant growth Dividend Discount Model (DDM). This step-by-step guide covers key concepts like expected returns, beta, risk-free rates, and growth rates, ensuring you master the logic behind combining CAPM and equity valuation techniques. Perfect for students preparing for introductory finance exams or anyone looking to deepen their understanding of these essential topics.

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How to solve CAPM questions on the security market line (SML)

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Explaining CAPM graphs for beginners (SML, CML, CAL, etc.)