PPT-Risk and return

chapter 8 Investment returns The rate of return on an investment can be calculated as follows Amount received Amount invested Return . Presenter. Venue. Date. Why Focus on Return Concepts?. Holding Period Return. Other Return Concepts. Equity Risk Premium. Equity Risk Premium Estimates. Historical Estimates. Forward-Looking Estimates. Stand-alone and Portfolio Considerations. Efficient Market Hypothesis. Securities are in equilibrium: “Fairly priced” . 100,000+ analysts (MBAs, CFAs, PhDs) work for investment firms. Analysts have access to data and $$ to invest. Chapter 12. Chapter Outline. 12.1 The Expected Return of a Portfolio. 12.2 The Volatility of a Portfolio . 12.3 Measuring Systematic Risk. 12.4 Putting it All Together: The Capital Asset Pricing Model . Chapter 11. Topics. Chapter 10:. Looked at past data for stock markets. There is a reward for bearing risk. The greater the potential reward, the greater the risk. Calculated averages so we have typical value. Ken . Shaw. Envestnet. | PMC. Paul Brennan. First Quadrant. Rob Croce. Salient Partners. Dan Villalon. AQR. First an introduction. What is Risk Parity. . How does Risk Parity work. . Where does Risk Parity fit in a portfolio. Introduction. Modern portfolio theory was fathered by Harry Markowitz in the 1950s. It assumes that an investor wants to maximize a portfolio's expected return . contingent . on any given amount of risk, with risk measured by the standard deviation of the portfolio's rate of return. © 2012 Pearson Prentice Hall. All rights reserved.. 8-. 1. © 2012 Pearson Prentice Hall. All rights reserved.. 8-. 2. Risk and Return Fundamentals. In most important business decisions there are two key financial considerations: risk and return.. , Gonzalez, Moore. , Siegert, . Tansey, . & Wyatt. 1. Overview. Expected . and Realized Rate of . Return. Stand-Alone Risk and Return . Portfolio . Risk and . Return. The . Calculation of . Beta. , Gonzalez, Moore. , Siegert, . Tansey, . & Wyatt. 1. Overview. Expected . and Realized Rate of . Return. Stand-Alone Risk and Return . Portfolio . Risk and . Return. The . Calculation of . Beta. Careers in Finance. Corporate finance. Investment, Money Management. Banking (commercial banking, investment banking). Insurance. Real estate finance. International finance. Derivatives (e.g., futures, options, swaps, etc). Module 5.4. Equilibrium risk pricing. Modules 2 and 3 largely followed the work of Markowitz.. Module 4 follows the work of Sharpe. . Sharpe was going after a “holy grail” of finance. He was trying to figure out how to identify over-priced and . Ch. 13. we have concentrated mainly on the return behavior of a few large portfolios. We need to expand our consideration to include individual assets. .. Specifically. , we have two tasks to accomplish. . Return & Risk. Chapter 10. 1. Topics. Calculate 1 Period Returns. Five Important Types of Financial Investments. Risk-Free Investment. What We Can Learn From Capital Market History. Using Past To Predict Future. Professor Droussiotis. Chapter 1. What’s This?. Expected Value Line Growth (Return). EXIT. ENTRY. Initial. Investment. Risk-Free Rate. Expected Value Line Growth (Return). EXIT. ENTRY. Initial. Investment.