RiskandReturn - RiskandReturn RiskandReturn...

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Risk and Return FINC 3610 Yost Risk and Return Chapter 12: Sections 12.1 12.3 Chapter 13 : Sections 13.4 13.6 [through page (black numbers) 372] The CAPM [pages (black numbers) 380 381] Chapter 12 Update 257 Risk What determines the required return on an investment? Two things to remember about risk: There is a reward for bearing risk. The greater the risk, the greater the potential reward. 258 Quote “October. This is one of the particularly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February.” ‐‐ Mark Twain 259
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Risk and Return FINC 3610 Yost Returns Cash flows for shares of stock: Example: You purchased 100 shares of stock in Obama Enterprises, Inc. last year for $50. You just received a $5 dividend. The market value of the stock is now $65. What are your dollar and percentage
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This note was uploaded on 12/11/2011 for the course FINC 3610 taught by Professor Yost during the Fall '08 term at Auburn University.

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RiskandReturn - RiskandReturn RiskandReturn...

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