TAILIEUCHUNG - Lecture Investment analysis & portfolio management - Chapter 30

After studying this chapter you will be able to understand: Capm – alpha va values continued, advnatges and disadvantages of capm, to apply the adjusted present value approach to decision making, risk adjusted WACC, chossing a discount rate, mergers and acquisiitions, venture capital. | Investment Analysis and Portfolio management Lecture: 30 Course Code: MBF702 Outline RECAP CAPM – ALPHA VA VALUES CONTINUED ADVNATGES AND DISADVANTAGES OF CAPM TO APPLY THE ADJUSTED PRESENT VALUE APPROACH TO DECISION MAKING RISK ADJUSTED WACC CHOSSING A DISCOUNT RATE MERGERS AND ACQUISIITIONS VENTURE CAPITAL Alpha factor - CONTINUED When shares yield more or less than their expected return (based on the CAPM), the difference is an abnormal return. This abnormal return might be referred to as the alpha factor. The alpha factor for a security is simply the balancing figure in the following formula: α values are temporary values as arbitrage gain opportunities / speculation will over a long period of time cause securities to offer the same return as that offered by a market portfolio (become inline with market). For projects with similar investment requirements & expected returns than the project with lowest β should be selected Example The return on shares of company A is 11%, but .

• 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