SERIES 6 EXAM QUIZZES CANDIDATES ON CAPITAL MARKET THEORIES AND CAPITAL ASSET PRICING MODEL (CAPM), SO BE PREPARED!

 If you plan to sit for the Series 6 Exam, know in advance that the Series 6 contains questions on Capital Market Theory and Capital Asset Pricing Model (CAPM). How do I know this? I know it because FINRA Series 6 Content Outline clearly indicates in Section 3.1 that there are possible questions that ask about portfolio theories, such as Capital Market Theory, Capital Asset Pricing Model, Modern Portfolio Theory, and Efficient Market Hypothesis.

Bob Eder in his Study for the Series 6 Exam discusses Capital Market Theory and Capital Asset Pricing Model (CAPM) in detail. Here is an example of Bob Eder's treatment:

Capital Market Theory                                                                                   3.1

When we talk about capital market theory, we mean the various ways that finance academics explain market portfolio techniques, analysis of pricing, returns, risk, and preservation of capital.

Capital Asset Pricing Model (CAPM)                                                            3.1

This theory tries to determine a fair return for individual securities based on their betas or their volatility, in relation to the whole market. CAPM evaluates individual securities, and their varying vulnerability to systematic risk. Stocks having higher betas are more risky in the event of a "systematic" crash.

Here is the link to FINRA's Content Outline for the Series 6 Exam. See the references to Capital Market Theory and Capital Asset Pricing Model (CAPM) in FINRA's Series 6 Content Outline, Section 3.1.

Study for the Series 6 Exam is available from Amazon in both paperback and Kindle e-book versions. Here is the link for Bob Eder's Study for the Series 6 Exam on Amazon.

See Bob Eder's Author Page on Amazon.com.

For questions about Bob Eder's Study for the Series 6 Exam, or questions in general about the Series 6 Exam, such as Capital Market Theory and Capital Asset Pricing Model (CAPM), feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001. 

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