Introduction to Corporate Finance

Ross et al.: Fundamentals

of Corporate Finance, Sixth

Edition, Alternate Edition

V. Risk and Return

Capital Market History

(^408) © The McGraw−Hill
Companies, 2002
RISK AND RETURN

PART FIVE

12. Some Lessons from Capital Market History

description of investors’ historical experiences in U.S. capital markets since 1926. It describes the

lessons financial managers can learn from studying capital market history and introduces the important

concept of an efficient capital market.

CHAPTER 13 Return,Risk,and the Security Market Line This chapter describes the nature

of the risk-return trade-off facing investors and firms. It shows how to use the risk-return trade-off to

determine the required return on an investment.

CHAPTER 14 Options and Corporate Finance Options have widespread use in corporate

finance. This chapter examines them in greater detail, beginning with ordinary stock options. We then

explore a variety of applications and examples, including employee stock options, real options, warrants,

and convertible bonds.

379