Investments, tenth edition

 8.5 

Practical Aspects of Portfolio Management with the 

Index Model  278

Is the Index Model Inferior to the Full-Covariance 

Model? / The Industry Version of the Index Model / 

Predicting Betas / Index Models and Tracking Portfolios

End of Chapter Material  284–290

PART III

Equilibrium in Capital 

Markets 291

CHAPTER 9

The Capital Asset Pricing 

Model 291

 9.1 

The Capital Asset Pricing Model  291

Why Do All Investors Hold the Market Portfolio? / 

The Passive Strategy Is Efficient / The Risk Premium of 

the Market Portfolio / Expected Returns on Individual 

Securities / The Security Market Line / The CAPM and 

the Single-Index Market