TAILIEUCHUNG - Lecture Investment analysis & portfolio management - Chapter 29

After studying this chapter you will be able to understand: Systematic and unsystematic risk – continuation, capm formula, uses of capm, limitations of capm, to apply the adjusted present value approach to decision making. | Investment Analysis and Portfolio management Lecture: 29 Course Code: MBF702 Outline RECAP SYSTEMATIC AND UNSYSTEMATIC RISK – CONTINUATION CAPM FORMULA USES OF CAPM LIMITATIONS OF CAPM TO APPLY THE ADJUSTED PRESENT VALUE APPROACH TO DECISION MAKING. SYSTEMATIC RISK Systematic risk is measured by a beta factor therefore the required return from an investment must be related to the beta factor of that is brought together in the Capital Asset Pricing Model which is a formula that relates required returns to beta factors, or measures of systematic risk. CAPM - formula Example The risk-free rate of return is 4% and the return on the market portfolio is . What is the expected return from shares in companies X and Y if: the beta factor for company X shares is the beta factor for company Y shares is Illustration The following information is available: Risk-free rate of return Expected market return Standard deviation of market return Standard .

• Tài chính doanh nghiệp
• Investment analysis
• Portfolio management
• Investment management
• Investment theory
• Investment environment
• Investment analysis
• Investment companies
• Time value of money
• Characteristics of investment
• Investment portfolio management
• Investment analysis & portfolio management
• Investment background
• Developments in investment theory
• Management of common stocks