bma9e08 Introduction to Risk, Return, and The Opportunity Cost of Capital Principles of Corporate Finance 9th Edition 公司金融教学课件文档.pptVIP

Beta and Unique Risk Covariance with the market Variance of the market Beta Web Resources /~shiller Click to access web sites Internet connection required * 13 * 13 * 14 * 18 * 19 * 20 * 21 * 19 * 19 * 19 * 19 * 19 * 19 * 19 * 19 * * * Copyright ? 2008 by The McGraw-Hill Companies, Inc. All rights reserved 8- * McGraw Hill/Irwin Chapter 8 Principles of Corporate Finance Ninth Edition Introduction to Risk, Return, and The Opportunity Cost of Capital Slides by Matthew Will Copyright ? 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw Hill/Irwin Topics Covered Over a Century of Capital Market History Measuring Portfolio Risk Calculating Portfolio Risk How Individual Securities Affect Portfolio Risk Diversification Value Additivity The Value of an Investment of $1 in 1900 The Value of an Investment of $1 in 1900 Real Returns Average Market Risk Premia (by country) Risk premium, % Country Dividend Yield (1900-2006) Rates of Return 1900-2006 Source: Ibbotson Associates Year Percentage Return Stock Market Index Returns Measuring Risk Return % # of Years Histogram of Annual Stock Market Returns (1900-2006) Equity Market Risk (by country) Standard Deviation of Annual Returns, % Average Risk (1900-2006) Dow Jones Risk Annualized Standard Deviation of the DJIA over the preceding 52 weeks (1900 – 2006) Measuring Risk Variance - Average value of squared deviations from mean. A measure of volatility. Standard Deviation - Average value of squared deviations from mean. A measure of volatility. Measuring Risk Coin Toss Game-calculating variance and standard deviation Measuring Risk Diversification - Strategy designed to reduce risk by spreading the portfolio across many investments. Unique Risk - Risk factors affecting only that firm. Also called “diversifiable risk.” Market Risk - Economy-wide sources of risk that affect the overall stock market. Also called “systematic risk.” Measuring Risk Measuring Risk Measuring Risk Portfolio Risk The varianc