'Security market line' diaporamas de présentation

Risk and Return

1.06k views • 54 slides

Percentage of sales approach:

Percentage of sales approach:. EFN and Capacity Usage. Suppose COMPUTERFIELD is operating at 75% capacity: 1. What would be sales at full capacity? (1p) 2. What is the capital intensity ratio at full capacity? (1p)

738 views • 53 slides

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. .

830 views • 50 slides

Return, Risk, and the Security Market Line

Chapter Thirteen. Return, Risk, and the Security Market Line. Chapter Outline. Expected Returns and Variances Portfolios Announcements, Surprises, and Expected Returns Risk: Systematic and Unsystematic Diversification and Portfolio Risk Systematic Risk and Beta The Security Market Line

619 views • 45 slides

Chapter 5: Risk and Rates of Return

Chapter 5: Risk and Rates of Return. Risk and Rates of Return:. Chapter Outline:. Types of Return. Types of Risk. Expected Rate of Return. The Measurement of Risk. The Return of A Portfolio. The Concept of Beta. . Types of Return:. Expected Return. Required Return. Realized Return.

630 views • 40 slides

Risk & Return

Risk & Return. Chapter 11. Topics. Chapter 10: Looked at past data for stock markets There is a reward for bearing risk The greater the potential reward, the greater the risk Calculated averages so we have typical value Calculated standard deviation to measure volatility or risk

463 views • 31 slides

Risk and Rates of Return

Chapter 8. Risk and Rates of Return. Historical Risk and Return Info. Based on annual returns from 1926-2004 Avg. Return Std Dev. Small Stocks 17.5% 33.1% Large Co. Stocks 12.4% 20.3% L-T Corp Bonds 6.2% 8.6% L-T Govt. Bonds 5.8% 9.3% U.S. T-Bills 3.8% 3.1%.

481 views • 31 slides

Portfolio Analysis and Theory

Portfolio Analysis and Theory . Portfolio Analysis. Definitions. A portfolio is the collection of securities an investor holds A portfolio weight is the proportion of total wealth allocated to a given security. Risk and Return for a Portfolio.

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Introduction to Capital Market Theory and Asset Pricing Model FINM014 Dr Xun Lei

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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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Chapter 2: Return and Risk ( I )

Chapter 2: Return and Risk ( I ). Basic return concepts Basic risk concepts Stand-alone risk Portfolio risk and market risk Risk and return: CAPM/SML . 1. What are investment returns?. Investment returns measure the financial results of an investment.

525 views • 25 slides

The Basics of Risk and Return

The Basics of Risk and Return. Corporate Finance. Dr. A. DeMaskey. Learning Objectives. Questions to be answered: What is risk? How is risk measured? What is the relationship between risk and return?. What Are Investment Returns?.

380 views • 22 slides

Chapter 7

Chapter 7. Capital Asset Pricing. Outline. Beta: the market risk Relationship between risk and return: CAPM Security Market Line: graphic representation of CAPM. 1. Beta. Breaking down sources of risk. Stand-alone risk = Market risk + Firm-specific risk

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FINE 3010-01 Financial Management

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The Capital Asset Pricing Model

The Capital Asset Pricing Model. P.V. Viswanath For a First Course in INvestments. Learning Goals. What are the assumptions of the CAPM? What are the implications of the CAPM? What happens if we relax the assumptions of the CAPM? Is the CAPM testable in principle?

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The CAPM

The CAPM. An extension of the Markowitz portfolio selection model Idea of equilibrium in the capital market Assumptions of the CAPM Resulting equilibrium conditions The Security Market Line (SML). A. Idea of equilibrium in the capital market. E(r i ) = r F + ? i [E(r M ) - r F ]

486 views • 17 slides

CHAPTER 7

CHAPTER 7. Capital Asset Pricing Model. Capital Asset Pricing Model (CAPM). CAPM is a theory of the relationship between risk and return CAPM underlies all modern finance. CAPM Assumptions . Information is costless and available to all investors Investors are risk averse

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Chapter 11 Notes

1.3k views • 16 slides

Efficient Market Hypothesis

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Figure 13-1 Overview of Capital Financing and Allocation Activities in a Typical Organization

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