英文版公司理财课件chapter10Introduction to risk, return, and the opportunity cost of capital教学教案.pptVIP

Chapter 10;Objectives;Content; When investors buy a stock or a bond, their return comes in two forms: (1) A dividend or interest payment and (2) A capital gain or a capital loss;Where: rt =actual, expected, or required rate of return during period t; Dt: cash received from the asset investment in the time period t-1 to t; Pt: price (value ) of asset at time t; Pt-1: price ( value ) of asset at time t-1, initial price;problem;;Content;Market index: 市场指数 Dow Jones Industrial Average: 道琼斯工业股票平均价格指数 Standard Poor’s composite index: 标准普尔综合指数 Maturity premium: 期限溢价 Risk premium: 风险溢价 market portfolio: 市场组合;When you invest in a stock, you don’t know what return you will earn. But by looking at the history of security returns, you can get some idea;Risk defined;Market indexes;The historical record;The safest investment, Treasury bills, had the lowest rates of return. Long-term government bonds gave slightly higher returns than Treasury bills Maturity premium: extra average return from investing in long- versus short-term Treasury securities;Risk premium; The historical record shows that investors have received a risk premium for holding risky assets. Average returns on high-risk assets are higher than those on low-risk assets;The opportunity cost of capital for safe projects is the rate of return offered by safe Treasury bills The opportunity cost of capital for “average-risk” projects is the expected return on the market portfolio;The expected return on an investment provides compensation to investors both for waiting (the time value of money) and for worrying (the risk of the particular asset);Content;Variance: 方差 Standard deviation: 标准差 Average return: 平均收益率;Probability distribution概率分布 ;Common stocks’ risk shows up in the wide spread of outcomes; high or low returns for Treasury bonds and bills are much less common. Investors in Treasury bonds and bills could be much more confident of the outcome than common stockholders;If we knew all