财务管理ch04风险和报酬.pptVIP

Chapter 4 Risk and Return 风险与报酬 Dollar Returns Total dollar return = income from investment + capital gain (loss) due to change in price Example: You bought a bond for $950 1 year ago. You have received two coupons of $30 each. You can sell the bond for $975 today. What is your total dollar return? Income = Capital gain = Total dollar return = Percentage Returns It is generally more intuitive to think in terms of percentages than dollar returns Dividend yield = income / beginning price Capital gains yield = (ending price – beginning price) / beginning price Total percentage return = dividend yield + capital gains yield Example – Calculating Returns You bought a stock for $35 and you received dividends of $1.25. The stock is now selling for $40. What is your dollar return? Dollar return = What is your percentage return? Dividend yield = Capital gains yield = Total percentage return = Defining Return Income received on an investment plus any change in market price, usually expressed as a percent of the beginning market price of the investment. Return Example The stock price for Stock A was $10 per share 1 year ago. The stock is currently trading at $9.50 per share and shareholders just received a $1 dividend. What return was earned over the past year? Exercise Suppose a firm’s stock is selling for $10.50. They just paid a $1 dividend and dividends are expected to grow at 5% per year. What is the required return? R = What is the dividend yield? What is the capital gains yield? Average Returns Risk Premiums（风险溢价） The “extra” return earned for taking on risk Treasury bills are considered to be risk-free The risk premium is the return over and above the risk-free rate Historical Risk Premiums Large stocks: 12.7 – 3.9 = 8.8% Small stocks: 17.3 – 3.9 = 13.4% Long-term corporate bonds: 6.1 – 3.9 =2.2% Long-term government bonds: 5.7 – 3.9 = 1.8% Expected Returns Expected returns are based on the probabilities of possible outcomes In this context, “expected” means avera