This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- How to calculate a security's expected return using the Capital Asset Pricing Model (CAPM) formula.

- The roles of the risk-free rate, beta, and the market risk premium in the CAPM calculation.

- Why the Security Market Line (SML) is the graphical representation of CAPM.

- How to use the SML to determine if a security is undervalued, overvalued, or fairly valued.

- To identify common distractor information, like standard deviation, in Series 65 CAPM questions.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep