MIT S17: The CAPM and APT III & Capital Budgeting I

This video lecture starts with an example that uses CAPM to explain market-cap portfolios. Different methods of sorting, including by size, beta, and volatility, are analyzed. The second part, focuses on making financial decisions as a manager, including applying the NPV rule and calculating project cash flows. Another example presented incorporates discount rates over time and NPV in the context of project decisions.