Basic return concepts Basic risk concepts Stand-alone risk Portfolio market risk Risk and return: CAPM

Nov 22, 2013

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. . . What are investment returns?. . Investment returns measure the financial results of an investment.Returns may be historical or prospective (anticipated).Returns can be expressed in:Dollar terms.Percentage terms. . . . . What is the return on an investment that costs $1,000 and is sold aft

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Basic return concepts Basic risk concepts Stand-alone risk Portfolio market risk Risk and return: CAPM

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Risk, Return, Portfolio Theory and CAPM

Risk, Return, Portfolio Theory and CAPM . TIP If you do not understand anything, ask me!. Where does the discount rate (for stock valuation) come from?. So far,. We have taken the discount rate as given.

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Risk and Return

Risk and Return. FIL 404 Prepared by Keldon Bauer. What are investment returns?. Investment returns measure the financial results of an investment. Returns may be historical or prospective (anticipated). Returns can be expressed in: Dollar terms. Percentage terms. .

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Risk and Return

Risk and Return. Risk and Return. Various Ways to Discount Cash Flows - WACC - APV - FTE We shall see these in action shortly But First What is the WACC. Risk and Return WACC, A Simple Example.

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Risk and Return

Risk and Return. Chapter 7. Sep 26, 2012. Learning Objectives. Define risk, risk aversion, and risk-return tradeoff. Measure risk. Identify different types of risk. Explain methods of risk reduction. Describe how firms compensate for risk. Discuss the CAPM. Financial Crisis.

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Risk and Return

Risk and Return. Learning Module. Expected Return. The future is uncertain. Investors do not know with certainty whether the economy will be growing rapidly or be in recession. Investors do not know what rate of return their investments will yield.

479 views • 24 slides

Risk and Return

Risk and Return. FIL 240 – Business Finance Prepared by Keldon Bauer. Risk and Return. Risk is defined as uncertainty of outcomes. In a financial sense, we are uncertain of the outcome of any investment. Formally, uncertainty is measured by variability.

1.08k views • 54 slides

Basic Concepts of Risk Analysis

Basic Concepts of Risk Analysis. Session 1 Dr. Bijan Khazai. Risk Analysis Fundamentals of Risk Analysis. Learning Objectives. Learn Terminology, definitions and key concepts of (disaster) risk. The notions of probability, acceptable risk and risk perception.

841 views • 16 slides

Risk and Return.

Risk and Return. Risk and Uncertainty. Risk and returns are two sides of the investment coin. Risk is associated with the possibility of not realizing return or realizing less return than expected.

757 views • 21 slides

Risk and Return

Risk and Return. By Jairaj Gupta. Session Objective. At the end of this session you should: Be aware of the key measures of risk and return for individual stocks and for portfolios. Be familiar with the effects of diversification

665 views • 45 slides

Concepts: Return and Risk

Concepts: Return and Risk. Review key concepts that are central to portfolio theory Holding-period return, and probability distributions The historical record. A. Holding Period Return (HPR). HPR = Holding Period Return P 0 = Price at the beginning of the period

281 views • 15 slides

Risk and Return

Risk and Return. Question 9. Shares. EZY Gold Ltd. $10 to buy Dividend is 50 cents per share each year. Shares will raise to $12 in 5 years . Bank Cash Management Account. ABC Bank 4% per year for the next 5 year. Property. Costal Land $1, 000, 000 to purchase

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Ch: 11- Return and Risk: CAPM

Ch: 11- Return and Risk: CAPM. Realized return Expected Return Individual Security Risk Covariance and Correlation Portfolio Expected Returns Diversification Effect Portfolio Risk and CAPM. Realized Return. Investors earn returns from stocks in two forms: Dividends, Capital gains

543 views • 18 slides

Return and Risk

Return and Risk. Returns – Nominal vs. Real Holding Period Return Multi-period Return Return Distribution Historical Record Risk and Return. Real vs. Nominal Rate. Real vs. Nominal Rate – Exact Calculation: R : nominal interest rate (in monetary terms)

470 views • 18 slides

Risk and Return

Risk and Return. Chapter 11. Key Concepts and Skills. Know how to calculate expected returns Understand the impact of diversification Understand the systematic risk principle Understand the security market line Understand the risk-return trade-off. Chapter Outline.

2.49k views • 43 slides

Risk and Return

11. Risk and Return. Prepared by Ernest Biktimirov, Brock University. Chapter Outline. 11.1 Expected Returns and Variances 11.2 Portfolios 11.3 Announcements, Surprises, and Expected Returns 11.4 Risk: Systematic and Unsystematic 11.5 Diversification and Portfolio Risk

695 views • 45 slides

Risk, Return, and CAPM

Risk, Return, and CAPM. Professor Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics and Law. Expected Returns. Methods used to estimate expected return. Decisions must be based on expected returns. Historical approach. Probabilistic approach. Risk-based approach.

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Risk and Return

Risk and Return. Managing stakeholder Relationships. Corporate social Responsibility. Agency Problem. Corporate Governance:

571 views • 35 slides

Risk and Return

Risk and Return. Alasdair Mackay. 1. Learning Objectives. Define risk, risk aversion, and risk-return tradeoff. How to measure risk. Identify different types of risk. Explain methods of risk reduction. Describe how firms compensate for risk.

403 views • 34 slides

Risk and Return

Risk and Return. Risk and Return. Defining Risk and Return Using Probability Distributions to Measure Risk Attitudes Toward Risk Risk and Return in a Portfolio Context Diversification The Capital Asset Pricing Model (CAPM). Defining Return.

614 views • 45 slides

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