lecture9Introduction to Risk, Return, and the Opportunity Cost of Capital.ppt

文档介绍：Irwin/McGraw-Hill
Chapter 9
Fundamentals of Corporate Finance
Third Edition
Introduction to Risk, Return, and the Opportunity Cost of Capital
Brealey Myers Marcus
slides by Matthew Will
Irwin/McGraw-Hill
The McGraw-panies, Inc.,2001
Topics Covered
Rates of Return
73 Years of Capital Market History
Measuring Risk
Risk & Diversification
Thinking About Risk
Rates of Return
Rates of Return
Nominal vs. Real
Market Indexes
Dow Jones Industrial Average (The Dow)
Value of a portfolio holding one share in each of 30 large industrial firms.
Standard & Poor’posite Index (The S&P 500)
Value of a portfolio holding shares in 500 firms. Holdings are proportional to the number of shares in the issues.
The Value of an Investment of $1 in 1926
Source: Ibbotson Associates
Index
Year End
Rates of Return 1926-1998
Source: Ibbotson Associates
Year
Percentage Return
Expected Return