I know how to derive at the CAPM from a microeconomic foundation. In a recent University course I stumbled over a slide that derived the CAPM solely from the Sharpe ratio:


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I cant come up with that steps by myself and it seems I am missing something down the line.

Do you guys here either have a source / video / etc. that derives the CAPM similarly in a step by step fashion? Or is someone here who could break the involved derivation steps into parts?

  • $\begingroup$ which course slides were the images taken from? $\endgroup$ – develarist Oct 26 '20 at 6:22

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