财务管理(英文第十三版)ch5shen.pptVIP

11.* Which security has the highest systematic risk? DCLK Which security has the lowest systematic risk? KO Is the systematic risk of the portfolio more or less than the market? more 11.* Based on the example in the book. Point out that there is a linear relationship between beta and expected return. Ask if the students remember the form of the equation for a line. Y = mx + b E(R) = slope (Beta) + y-intercept The y-intercept is = the risk-free rate, so all we need is the slope 11.* Ask students if they remember how to compute the slope of a line: rise / run If the reward-to-risk ratio = 8,