11 10 28 Review Session 5 _Concept Review_

11 10 28 Review Session 5 _Concept Review_ - Individual...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Individual Stocks Portfolio Choice and Diversification CAPM (Individual Securities) CAPM (Portfolio) Cost of Capital Managerial Finance: Review Session 5 TA: Pablo Villanueva October 28, 2011 Individual Stocks Portfolio Choice and Diversification CAPM (Individual Securities) CAPM (Portfolio) Cost of Capital Agenda for Today 1. Individual Stock • Expected Return • Volatility • Correlation with other Stocks 2. Portfolio Choice and Diversification • Expected Return • Volatility 3. CAPM (Individual Securities) • Market Portfolio • Beta 4. CAPM (Portfolio) • Beta of a Portfolio 5. Cost of Capital • Equity Cost of Capital • Debt Cost of Capital • Project’s Cost of Capital Individual Stocks Portfolio Choice and Diversification CAPM (Individual Securities) CAPM (Portfolio) Cost of Capital Expected Return and Volatility • Expected Return • E [ R i ] = Prob ( Return 1 ) * Return 1 + Prob [ Return 2 ] * Return 2 • Variance • Var [ R i ] = Prob ( Return 1 ) * ( Return...
View Full Document

{[ snackBarMessage ]}

Page1 / 10

11 10 28 Review Session 5 _Concept Review_ - Individual...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online