Risk and Return
In class discussion:
This section reviews fundamental information about the risk - return relationship and methods of measuring risk. It assumes the student has an understanding of basic statistics and hypothesis testing. The concepts learned are required in order to understand and master the advanced material in later sections covering capital budgeting, investment analysis, and valuation procedures.
Text Readings and Assignments:
Fundamentals of Financial Management, by Eugene F. Brigham & Joel F. Houston, 11th. edition, (Thomsom - South-Western)
ISBN: 0324319800
Assigned Readings: Chapter 8 (pp. 244-280)
| Component | Chapter Sections: |
Pages |
Questions |
Self Test |
Problems |
| Topics | 8.1 - 8.5 | 245 - 279 | |||
| Assignments | 1,2,5,8 | 1,2,3 | 1,2,3,4,5,6,7,8,9,11,13,14,16,19 |
Solutions to assigned Questions and Problems are available in MS WORD format here.
Dr. Constand's Online Readings:
The links below will take you to summaries of the professors' notes and discussions on the topics.
Calculating Statistics for a Discreet Probability Distribution
Different Standard Deviation Calculations
Other Online Readings and Assignments:
None
Jump to another topic in this module:
Incremental After-Tax Cash Flow
Debt - Valuation and Rates of Return
Equity - Valuation and Rates of Return
Calculating the Weighted Average Cost of Capital
Capital Budgeting - Valuation of Investment Projects