Financial Literacy Program

Teaching the
Language of Money

Disciplined. Practical. Results-driven.

A structured, three-tier curriculum for business and nonprofit leaders who need to read, interpret, and act on financial information with confidence — without a finance degree. Created by Matt Baumgartner, MBA, CFA Candidate.

3Program Levels
6Core Modules
∞Practical Application
View Sample Materials Explore the Program
The Curriculum

Three levels.
One clear progression.

Each level builds deliberately on the last — from foundational literacy through advanced capital markets theory. Participants enter where they are and advance at their own pace.

Level 01
Foundations
The Language
of Finance

Build confidence with core concepts. Designed for leaders who need to understand financial statements without becoming accountants.

  • Cash vs. accrual accounting & GAAP principles
  • The three financial statements
  • Liquidity vs. solvency — a critical distinction
  • Five essential financial ratios
  • Common red flags every leader should know
Level 02
Intermediate
Analysis
in Practice

Go deeper on ratio analysis, nonprofit vs. for-profit reporting differences, and the financial decision-making cycle.

  • Liquidity, solvency & profitability ratios in depth
  • Efficiency ratios & working capital management
  • Nonprofit vs. for-profit financial reporting
  • Restricted vs. unrestricted funds
  • Financial decision-making frameworks
Level 03
Advanced
Capital Markets
& Valuation

Investment theory, asset pricing, and corporate valuation for participants ready to engage with capital markets concepts.

  • Capital Asset Pricing Model (CAPM)
  • Beta, alpha & the Security Market Line
  • Modern Portfolio Theory & diversification
  • WACC & the cost of capital
  • Discounted Cash Flow (DCF) valuation
Sample Training Material

Level 3 Reference
Infographic

Module CAPM
Level 3 — Advanced
Format Reference Handout

Each session is supported by purpose-built reference materials. This infographic accompanies the Level 3 module on the Capital Asset Pricing Model — covering the formula, its components, the Security Market Line, and practical application in WACC and DCF analysis.

baumgartnerglobalcapitalpartners.com / financial-literacy / capm-reference
Level 3 · Asset Pricing
Baumgartner Global Capital Partners
Financial Literacy Program  ·  Institutional Series
Level 3  ·  Asset Pricing
Core Framework
Capital Asset
Pricing Model
CAPM establishes the relationship between systematic risk and expected return — the cornerstone of modern portfolio theory.
The CAPM Equation
E(Ri) = Rf + βi · [E(Rm) − Rf]
E(Ri)Expected return on asset
RfRisk-free rate
βiBeta / systematic risk
MRPMarket risk premium
Beta (β) — Market Sensitivity
β < 1
Defensive
Less volatile. Lower risk & return.
β = 1
Market
Mirrors the market exactly.
β > 1
Aggressive
Amplifies moves. Higher risk.
β < 0
Inverse
Moves opposite market.
Systematic vs. Unsystematic Risk
CAPM prices only systematic risk — what remains after diversification. Unsystematic risk earns no premium.
Risk-Free Rate (Rf)
Return of a zero-risk investment. Use 10-yr Treasury yield (~4.5%) matched to the investment horizon.
Market Risk Premium
The excess return demanded for holding the market. Use forward-looking MRP ~5.0–5.5% (Damodaran).
Expected Return & Valuation
CAPM output serves as cost of equity (Ke) in WACC and DCF models, linking risk to capital budgeting.
Security Market Line (SML)
β E(R) Rf 0.5 1.0 1.5 SML Market Portfolio Undervalued α > 0 Overvalued α < 0
SML — fairly priced assets lie on the line
Above = undervalued (α > 0)
Below = overvalued (α < 0)
Level 3 Key Insight
CAPM doesn't tell us what an asset will return — it tells us what it should return given its risk. The gap is alpha: the true measure of active management skill.
Practical Application
Rf
Risk-Free Rate
Use 10-yr Treasury (~4.5%). Match tenor to holding period.
β
Beta Estimation
60-month regression. Apply Blume adjustment for mean-reversion.
MRP
Market Risk Premium
Forward-looking estimate. Damodaran: ~5.0–5.5% U.S.
Ke
Cost of Equity
Feed into WACC for DCF. Compare to IRR for value creation.
Model Assumptions
Rational, risk-averse investors
Perfectly efficient markets
Single-period investment horizon
Uniform risk-free borrowing rate
No taxes or transaction costs
Known Limitations
Beta is backward-looking
Single-factor vs. Fama-French
Market portfolio unobservable
Empirical SML is flatter
Ignores real-world frictions
Baumgartner Global Capital Partners  ·  Financial Literacy Program  ·  Internal Use Only
Capital Markets Fundamentals03
3
Program Levels
From financial statement basics through advanced capital markets theory. Each level builds deliberately on the last.
6
Core Modules
Financial statements, ratio analysis, cash flow, nonprofit reporting, decision-making, and capital markets.
1
Clear Goal
Leaders who can read, interpret, and act on financial information with confidence — without a finance degree.
About the Instructor

Financial expertise
made accessible

"The goal isn't to produce accountants. It's to produce leaders who ask better questions — and make better decisions because of it."

Matt Baumgartner created this curriculum from firsthand experience — twenty years leading organizations where financial decisions had real consequences, and countless conversations with leaders who needed practical financial fluency, not theory for its own sake.

🎓
MBA — Accounting ConcentrationBS Business — Management & Accounting
📐
Postgraduate Studies, The Wharton SchoolCertificate in Leadership — University of Pennsylvania
📊
CFA Charter CandidateAdvanced investment & valuation theory
💼
20+ Years Executive LeadershipP&L ownership, board service, and executive financial decision-making across public and private sectors
🏆
Top 100 People to Know — Twin Cities BusinessTop 500 Most Influential Business People — Minnesota
Get Started

Ready to bring financial
literacy to your organization?

The program is available for organizations, chambers of commerce, and executive groups. Sessions are tailored to your audience's level and industry context.

Schedule a Conversation Review Sample Materials
Emailmatt@baumgartnerglobalcapitalpartners.com
Phone+1 (218) 341-4026