Brand Bitesize: Capital Asset Pricing Model (CAPM)

In this Brand Bitesize video, we take a look at the Capital Asset Pricing Model. This could be useful for anyone studying for the CII’s R02, J10, J12, or AF4 exams.

This video is correct as at 9 May 2023.

Capital Asset Pricing Model

The Capital Asset Pricing Model or, as it’s more commonly referred to ‘CAPM’ is a model that is used to describe the relationship between the expected return of an investment and its risk. It assumes that investors will expect a higher return (a risk premium) than the risk-free rate when investing in a higher-risk product. In any given CII R02 paper, there’ll almost certainly be at least one question relating to CAPM, but it could also appear in J10, J12, and AF4. In this video, we take a quick look at what CAPM is, and how it is calculated.

Grab the resources you need!

If you’re studying for your CII R02 exam, and you’re aiming for a comfortable pass, you need to get all the practice you can. Grab our free taster to try out one of Brand Financial Training’s resources for yourself.  Click the link to download the R02 mock exam taster now!

Alternatively, you can try the taster for J10, J12, or AF4 if you’re studying for one of those exams.