I-Banking Modelling

Hello everyone,

I am a Finance and Accounting student and I am going to a seminar presented by on of my teachers. He asked everyone to say what they want to learn there so I decided to ask for you help: what are the most used models for asset-pricing and risk-management in I-Banking?

Thanks for your help,
Calais

5 Comments
 

CAPM? There is a lot of empirical evidence about that Capital Asset Pricing Model does not work. In this way I think the three factor Fama&French is more used than CAPM for asset pricing.

 
Best Response

I know what you mean, but I'm talking about something for college level. If he is asking about the models it means that he never learnt them. I don't know exactly in which course he is, but in college the first thing they teach you is CAPM independently of the accuracy. You begin from botton to top.

However yes, I am wrong since he specified in IB sector, which is not same as books. In this case you are right.

 

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