tai文档新wan财务管理_lecture9(ch9).pptVIP

Topics Covered Rates of Return 73 Years of Capital Market History Measuring Risk Risk Diversification Thinking About Risk Rates of Return Rates of Return Rates of Return Rates of Return Nominal vs. Real Market Indexes Expected Return 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 Risk and Diversification Diversification - Strategy designed to reduce risk by spreading the por