'Risk return relationship' diaporamas de présentation

Introduction to Risk and return

Introduction to Risk and return. Chapter 5. Learning Objectives . LO1: The risk-return relationship LO2: Computing the return on a single asset LO3: Evaluating the risk of holding a single asset LO4: Computing the expected return for a portfolio of assets

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Corporate Finance Lecture 3 Risk and Return

Corporate Finance Lecture 3 Risk and Return. Selcuk Caner Bilkent University. Chapter 6 Outline. Risk return relationship Stand-alone risk Portfolio risk Risk & return: CAPM/SML. What is investment risk?. Investment risk is the probability of actually earning a low or negative return.

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Developing Your Asset Allocation Strategy for Retirement

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Outline

RCM-3 The Integration of Risk and Return in Practice - From Ratemaking to ERM Russ Bingham Ratemaking Seminar Vice President Actuarial Research Atlanta, GA Hartford Financial Services March 8-9, 2007. Outline. Corporate Objective: Financial Discipline and Operational Application

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Chapter 18 CAPITAL ASSET PRICING THEORY

Chapter 18 CAPITAL ASSET PRICING THEORY. What is the capital market line (CML)? How is the Capital Asset Pricing Model (CAPM) developed? What is the difference between the standard deviation risk and beta risk measures? How can an investor apply the CAPM to security analysis?

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Chapter 7

Chapter 7. Portfolio Theory and Other Asset Pricing Models. Topics in Chapter. Portfolio Theory Capital Asset Pricing Model (CAPM) Capital Market Line (CML) Security Market Line (SML). Efficient Set. Expected Portfolio Return, r p. Feasible Set. Risk, ? p.

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Russ Bingham Vice President and Director of Corporate Research Hartford Financial Services

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Russ Bingham Vice President and Director of Corporate Research Hartford Financial Services

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CHAPTER TWELVE

CHAPTER TWELVE. ARBITRAGE PRICING THEORY. Background. Estimating expected return with the Asset Pricing Models of Modern Finance CAPM Strong assumption - strong prediction. Expected Return. Expected Return. B. C. x. x. x. x. x. x. Market Index. x. x. x. x. x. x. x. x.

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CHAPTER 12 SECTION 2 Part One

CHAPTER 12 SECTION 2 Part One. Investment Strategies And Financial Assets. Objectives. Identify four important considerations The three characteristics of bonds The characteristics of major financial assets Four views of markets for financial assets

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Summary to Date

Summary to Date. Investing is about measuring and understanding the risk/return relationship Risk Measured through the use of standard deviation Controlled through diversification The Capital Allocation Line The Sharpe Ratio (reward to volatility) The mean-variance criterion

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