[经济学]公司理财Chap011.pptVIP

Return and Risk: The Capital Asset Pricing Model (CAPM) Wisdom Don’t put all your eggs in one basket. ---- Anonymous The reason why corporations do not enter gambles with volatile payoffs and small positive expected returns is that managers know that generally volatility matters. ---- Rene M. Stulz Mini Case Risk and return are concepts that we deal with every day. For many people it is quite acceptible to risk $20 every week in the lottery, in view of potential returns of hundreds of thousands (or even millions) of dollars. When you buy a lottery ticket, the risk of losing your $20 is very high (how often have you won anything at lotto). In general, in order to take a higher risk, you would expect a much greater potential payoff. Consider a lottery where each ticket costs $2000. Would you buy a ticket if the odds were the same as in the lottery where the ticket costs $20? Probably not---you would expect much better odds of winning in order to risk such a big amount of money. “Better odds” means that you would expect a much higher probability of winning back your bet. How much you will be willing to risk, given a set probability of winning or losing, depends on your character--- you may be a risk-lover or you may be risk averse. odd Stange, unusual Seperated from a part or set to which it belongs to eg. two odd socks That can’t be divided exactly by 2 Not happening regularly eg. He likes the odd drinks. Near in number eg. They lived abroad for 30 odd years. Odd jobs: small practical jobs that you do in your home odds The possibility that something will or will not be happen eg. The odds are that he will fail the exam This possiblity expressed in numbers when making a bet 打赌的赔率 eg. If you bet $1 on a horse with the odds at 10 to 1 and the horse wins, you get $11 back. Chapter Outl