What you SHOULD know about the CAPM

I realised, I simplified the Eugene Fama Paper a bit too much. He does not test Sharpe ratios- but the alphas in the factor models. But I have not talked about factor models in this course, so if you think in terms of Sharpe ratios, this gives you perfect intuition. PAPER ON BEATING THE MARKET: Fama, Eugene F., and Kenneth R. French. "Luck versus skill in the cross‐section of mutual fund returns." The journal of finance 65.5 (2010): 1915-1947. MUSIC: Aesthetics (https://pixabay.com/music/beats-aesth...) Funky Teaser (https://pixabay.com/music/funk-funky-...) Galaxy Echo (https://pixabay.com/music/beats-galax...)