Risk, Return, and Social Security - Applying CAPM to Fund Management and Social Security Reform

Explore key concepts in financial theory through this 1 hour 14 minute lecture from Yale University's ECON 251 course. Delve into testing the Capital Asset Pricing Model (CAPM), evaluating fund manager performance, and analyzing the return differential between stocks and bonds. Examine how CAPM informs discussions on Social Security, including potential privatization and the introduction of Personal Annuitized Average Wage Securities (PAAWS). Learn about reconciling political views on Social Security and gain insights into the Black-Scholes model. Enhance your understanding of risk, return, and their implications for financial decision-making and policy.