The Investment Principle: Risk and Return
Models
You cannot swing upon a rope that is attached only to your
own belt.
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First Principles
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The notion of a benchmark
Since nancial resources are nite, there is a
The Objective in Corporate Finance
If you don t know where you are going, it does not matter how you get
there
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First Principles
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The Classical Viewpoint
Van Horne: "In this book, we assume that the objectiv
Measuring Investment Returns
II. Investment Interactions, Options and
Remorse
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Independent investments are the exception
In all of the examples we have used so far, the investments that we
have analyzed have stood alone. Thus, ou
Back to First Principles
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Measuring Investment Returns
I: The Mechanics of Investment Analysis
Show me the money
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from Jerry Maguire
195!
First Principles
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Measures of return:
From Risk & Return Models to Hurdle Rates:
Estimation Challenges
The price of purity is purists
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Anonymous
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Inputs required to use the CAPM -
The capital asset pricing model yields the following expected return:
Expec
Getting to the Optimal:
Timing and Financing Choices
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Big Picture
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Now that we have an optimal. And an actual. What next?
At the end of the analysis of nancing mix (using whatever tool or tools you
choose to
Capital Structure: The Choices and the
Trade off
Neither a borrower nor a lender be
Someone who obviously hated this part of corporate nance
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First Principles
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The Choices in Financing
There are only two w
Finding the Right Financing Mix: The
Capital Structure Decision
Neither a borrower nor a lender be
S o m e o n e w h o o b v io u s ly h a te d th is p a r t o f c o r p o r a te n a n c e
A s w a th D a m o d a r a n
2
First Principles
I n v e s t in p r