Investing 101
By Lita EpsteinLesson 3: New Investment Technology
Lesson 3 Field Trip
Time Estimate 30 to 60 minutes
Destination Explore additional Web sites that focus on the academic side of investing.
Instructions This week you'll visit some sites to explore the academic viewpoint in greater depth and to use some interactive tools to help you put their ideas into practice.
- Risk Watch uses the basics of the Capital Asset Pricing Model (CAPM) to help people understand risk. The link below takes you to the section that focuses on the CAPM. While you are there, be sure to stop at the introduction to Risk and the Risk Library sections. Go to: http://risk.ifci.ch/00010673.htm
- Arbitrage Pricing Theory is the Web site that focuses on the new kid on the block, APT, which is an attempt to improve on CAPM. Go to: http://www.aptltd.com/Home.htm
- New Jersey Institute of Technology Interactive Tutorials gives you a chance to put the theory of CAPM into practice. Read the Introduction to the CAPM Calculator and try out the CAPM Calculator and CAPM Problems. There are other good tools for financial analysis you may want to try out while you are there. Go to: http://www-ec.njit.edu/~mathis/interactive/
Study Questions
- Did you find these Web sites helpful for learning about these academic theories? Why or why not?
- Which Web site did you like the best and why?
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