财务管理基础ch.pptVIP

CHAPTER 2Risk and Rates of ReturnStand-alone riskPortfolio riskRisk return: CAPM / SML第一页，共六十三页。 Investment returnsThe rate of return on an investment can be calculated as follows: (Amount received – Amount invested) Return = ________________________ Amount investedFor example, if $1,000 is invested and $1,100 is returned after one year, the rate of return for this investment is: ($1,100 - $1,000) / $1,000 = 10%.第二页，共六十三页。 What is investment risk?Two types of investment riskStand-alone riskPortfolio risk Investment risk is related to th