Principles of Corporate Finance
Cost of Excess Capacity A project uses existing warehouse and requires a new one to be built in Year 5 rather than Year 10. A wa ...
Fluctuating Load Factors PV operating cost of two machines 2 15,000 $30,000 PV operating cost per pachine 1,500/.10 $15,000 Oper ...
Fluctuating Load Factors PV operating cost of two machines 2 13 , 500 $27,000 PV operating cost per pachine 6,000 750/.10 $13,50 ...
Fluctuating Load Factors PV operating cost of two machines ................................$ 26 , 000 PV operating cost per pach ...
u Introduction to Risk, Return, and the Opportunity Cost of Capital Principles of Corporate Finance Brealey and Myers Sixth Edit ...
Topics Covered w 72 Years of Capital Market History w Measuring Risk w Portfolio Risk w Beta and Unique Risk w Diversification ...
The Value of an Investment of $1 in 1926 Source: Ibbotson Associates 0,1 10 1000 1925 1933 1941 1949 1957 1965 1973 1981 1989 19 ...
0,1 10 1000 1925 1933 1941 1949 1957 1965 1973 1981 1989 1997 S&P Small Cap Corp Bonds Long Bond T Bill The Value of an Inve ...
Rates of Return 1926-1997 Source: Ibbotson Associates -60 -40 -20 0 20 40 60 26 30 35 40 45 50 55 60 65 70 75 80 85 90 95 Common ...
Measuring Risk Variance - Average value of squared deviations from mean. A measure of volatility. Standard Deviation - Average v ...
Measuring Risk Coin Toss Game-calculating variance and standard deviation (1) (2) (3) Percent Rate of Return Deviation from Mean ...
Measuring Risk 1 1 2 4 12 11 13 10 13 (^32) 01 23 45 67 89 1011 1213 -50 to -40-40 to -30-30 to -20-20 to -10-10 to 00 to 1010 t ...
Measuring Risk Diversification - Strategy designed to reduce risk by spreading the portfolio across many investments. Unique Ris ...
Measuring Risk Portfolio rate of return = fraction of portfolio in first asset x rate of return on first asset + in second fract ...
Measuring Risk 0 5 10 15 Number of Securities Portfolio standard deviation ...
Measuring Risk 0 5 10 15 Number of Securities Portfolio standard deviation Market risk Uniquerisk ...
Portfolio Risk (^2222) 1 2 12 1 2 1 2 12 1 2 12 1 2 12 12 1 2 12 x ó x x ñ ó ó Stock 2 x x ó x x ñ ó ó Stock 1 x ó x x ó Stock 1 ...
Portfolio Risk Example Suppose you invest $55 in Bristol-Myers and $45 in McDonald’s. The expected dollar return on your BM is . ...
Portfolio Risk (^121212222222) 12 12 2 2 1 2 12 1 2 McDonald's x x 1 ñ 17 ó. 1 ó 20 .. 855.^45 x ó (. 45 ) ( 20. 8 ) 1 17. 1 20. ...
Portfolio Risk Example Suppose you invest $55 in Bristol-Myers and $45 in McDonald’s. The expected dollar return on your BM is . ...
«
3
4
5
6
7
8
9
10
11
12
»
Free download pdf