CF2 Ch 05 Risk and Return 公司财务与金融 课件.pptVIP

CHAPTER 5 Risk and Return Topics in Chapter Basic return concepts Basic risk concepts Stand-alone risk Portfolio (market) risk Risk and return: CAPM/SML 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. An investment costs $1,000 and issold after 1 year for $1,100. What is investment risk? Typically, investment returns are not known with certainty. Investment risk pertains to the probability of earning a return less than that expect