Principles of Corporate Finance_ 12th Edition

bre44380_ch07_162-191.indd 172 09/02/15 04:11 PM 172 Part Two Risk For this game the expected return is 10%, the same as that of ...

bre44380_ch07_162-191.indd 173 09/02/15 04:11 PM Chapter 7 Introduction to Risk and Return 173 Figure 7.8 does not suggest a lon ...

bre44380_ch07_162-191.indd 174 10/09/15 10:08 PM 174 Part Two Risk Take a look also at Table 7.4, which shows the standard devia ...

bre44380_ch07_162-191.indd 175 09/02/15 04:11 PM Chapter 7 Introduction to Risk and Return 175 two-stock portfolios, five-stock ...

bre44380_ch07_162-191.indd 176 09/02/15 04:11 PM 176 Part Two Risk the value of Newmont was offset by a rise in the price of For ...

bre44380_ch07_162-191.indd 177 09/02/15 04:11 PM Chapter 7 Introduction to Risk and Return 177 Calculating the expected portfoli ...

bre44380_ch07_162-191.indd 178 09/02/15 04:11 PM 178 Part Two Risk The portfolio standard deviation is, of course, the square ro ...

bre44380_ch07_162-191.indd 179 09/02/15 04:11 PM Chapter 7 Introduction to Risk and Return 179 invested. Each of the other boxes ...

bre44380_ch07_162-191.indd 180 09/02/15 04:11 PM 180 Part Two Risk Notice that as N increases, the portfolio variance steadily a ...

bre44380_ch07_162-191.indd 181 10/09/15 10:08 PM Chapter 7 Introduction to Risk and Return 181 Market Risk Is Measured by Beta I ...

bre44380_ch07_162-191.indd 182 10/09/15 10:08 PM 182 Part Two Risk which has a relatively high standard deviation, is a leading ...

bre44380_ch07_162-191.indd 183 09/02/15 04:11 PM Chapter 7 Introduction to Risk and Return 183 The general point is this: The ri ...

bre44380_ch07_162-191.indd 184 10/09/15 10:08 PM 184 Part Two Risk We have seen that diversification reduces risk and, therefore ...

bre44380_ch07_162-191.indd 185 09/02/15 04:11 PM Our review of capital market history showed that the returns to investors have ...

bre44380_ch07_162-191.indd 186 09/02/15 04:11 PM 186 Part Two Risk For international evidence on market returns since 1900, see: ...

bre44380_ch07_162-191.indd 187 09/02/15 04:11 PM Chapter 7 Introduction to Risk and Return 187 Average returns and standard dev ...

bre44380_ch07_162-191.indd 188 09/02/15 04:11 PM 188 Part Two Risk Stock Return if Market Return Is: Stock –  10% +10% A 0 + 20 ...

bre44380_ch07_162-191.indd 189 09/02/15 04:11 PM Chapter 7 Introduction to Risk and Return 189 Portfolio risk Hyacinth Macaw in ...

bre44380_ch07_162-191.indd 190 09/02/15 04:11 PM 190 Part Two Risk b. You have $1 million invested in a well-diversified portfol ...

bre44380_ch07_162-191.indd 191 09/02/15 04:11 PM Chapter 7 Introduction to Risk and Return 191 You can download data for questio ...