英文版公司理财课件chapter10.pptVIP

COPYRIGHT?ZHULI Chapter 10 Introduction to risk, return, and the opportunity cost of capital Objectives Estimate the opportunity cost of capital for an “average-risk” project Calculate the standard deviation of return for individual common stocks or for a stock portfolio Understand why diversification reduces risk Distinguish between unique risk, which can be diversified away, and market risk which cannot Content Rates of return: a review A century of capital market history Measuring risk Risk and diversification Thinking about risk problem Suppose you bought 100 shares of Wal-Mart (WMT) one year ago today at $25. Over the last year, you received $20 in dividends (20 cents per share × 100 shares). At the end of the year, the stock sells for $30. How did you do? Quite well. You invested $25 × 100 = $2,500. At the end of the year, you have stock worth $3,000 and cash dividends of $20. Your dollar gain was $520 = $20 + ($3,000 – $2,500). Your percentage gain for the year is: Content Rates of return: a review A century of capital market history Measuring risk Risk and diversification Thinking about risk Risk defined In the most basic sense, risk is the chance of financial loss. Assets having greater chances of loss are viewed as more risky than those with lesser chances of loss. More formally, the term risk is used interchangeably with uncertainty to refer to the variability of returns associated with a given asset. Market indexes Financial analysts can’t trace every stock, so they rely on market indexes to summarize the return on different classes of securities Market index: measure of the investment performance of the overall market Dow Jones Industrial Average: index of the investment performance of a portfolio of 30 “blue-chip” stocks Standard Poor’s composite index: index of the investment performance of a portfolio of 500 large stocks. Also called the SP 500 The historical record Maturity premium The safest investment, Treasury bills, had the lowest