'Certainty equivalent' presentation slideshows

Chapter 5

961 views • 77 slides

Chapter 5

Chapter 5. Risk and Return. After studying Chapter 5, you should be able to:. Understand the meaning of risk, return and risk preferences. Measure the risk and return of a single asset. Measure the risk and return of a portfolio of assets. Explain beta and the CAPM model.

693 views • 69 slides

Chapter 5

724 views • 57 slides

Corporate Financial Theory

Corporate Financial Theory. Lecture 3. Interest Rate and Cash Flow - REALITY. Is not guaranteed. Has many different sources. Beta and the COC. Company cost of capital (COC) is based on the average beta of the assets

660 views • 56 slides

Risk and Return

Risk and Return. Risk and Return. Defining Risk and Return Using Probability Distributions to Measure Risk Attitudes Toward Risk Risk and Return in a Portfolio Context Diversification The Capital Asset Pricing Model (CAPM). Defining Return.

599 views • 45 slides

Chapter 12

Chapter 12. RISK ANALYSIS IN CAPITAL BUDGETING. LEARNING OBJECTIVES. Discuss the concept of risk in investment decisions. Understand some commonly used techniques, i.e., payback, certainty equivalent and risk-adjusted discount rate, of risk analysis in capital budgeting.

423 views • 42 slides

Capital Budgeting & Risk

Capital Budgeting & Risk. Invest in highest NPV project. Need Discount rate to get NPV. Capital Budgeting & Risk. Invest in highest NPV project. Need Discount rate to get NPV. Use CAPM to get discount rate. Capital Budgeting & Risk. Invest in highest NPV project.

507 views • 38 slides

Risky business

Risky business. ECO61 Microeconomic Analysis Udayan Roy Fall 2008. Choices can have unpredictable results. The possible outcomes of a risky decision are called: States of nature. Probability. Each state of nature has a probability Probability is a number between 0 and 1, a fraction

767 views • 35 slides

4: Risk and Return

4: Risk and Return. Defining Risk and Return Using Probability Distributions to Measure Risk Attitudes Toward Risk Risk and Return in a Portfolio Context Diversification The Capital Asset Pricing Model (CAPM). Defining Return.

1.15k views • 34 slides

Chapter 9

Chapter 9. Capital Budgeting and Risk. Topics Covered. Company and Project Costs of Capital Measuring the Cost of Equity Capital Structure and COC Discount Rates for Intl. Projects Estimating Discount Rates Risk and DCF. Company Cost of Capital.

430 views • 34 slides

Decision Analysis - Part 2

Graduate Program in Business Information Systems. Decision Analysis - Part 2. Asl? Sencer. Ex: Decision to buy insurance. Best act. IS IT SURPRISING?. Is Bayes decision rule invalid?. No, actually the true worth of outcomes is not completely reflected by the payoffs! Two approaches:

415 views • 32 slides

Business Management in the Czech Republic

303 views • 30 slides

Chapter 6

397 views • 27 slides

Advanced Capital Budgeting

Advanced Capital Budgeting. Contents -. Re-visit the basics Compare various project evaluation methods Unequal project lives Capital Rationing Capital budgeting during Inflationary conditions Evaluation techniques under Risk & Uncertainty. Capital Budgeting ??.

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Portfolio Selection with Skew Normal Asset Returns Quan Gan Discipline of Finance, University of Sydney

Portfolio Selection with Skew Normal Asset Returns Quan Gan Discipline of Finance, University of Sydney. Apologies. Due to the expended scope of my paper. I change the title of the paper. The previous title was: Performance of Equity REITs: Does a Skew Factor Matter?. BUSINESS SCHOOL.

351 views • 21 slides

Constant Relative and Absolute Risk Aversion and Derivation of the State Contingent Dual Functions

Constant Relative and Absolute Risk Aversion and Derivation of the State Contingent Dual Functions. Lecture XXXIV. Constant Relative and Absolute Risk Aversion. Risk Premium

482 views • 20 slides

Systems Analysis Methods Dr. Jerrell T. Stracener, SAE Fellow

SMU EMIS 5300/7300. SMU EMIS 5300/7300. NTU SY-521-N. NTU SY-521-N. Systems Analysis Methods Dr. Jerrell T. Stracener, SAE Fellow. Utility Theory Applications updated 11.27.01. Rationality Never try to explain with a rational model that

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DRQ #8 AGEC 317 5 pts October 1, 2013

DRQ #8 AGEC 317 5 pts October 1, 2013. 1. (1 pt ) Suppose that U($250)=50, U($500)=70, and U($1,000)=90 What type of behavior does this decision-maker exhibit? Risk aversion 2 . Suppose that for a particular firm, the following payoff matrix is obtained.

121 views • 2 slides