9-2 Topics Covered RAtes of return 373 Years of Capital Market Histor → Measuring risk RIsk diversification THinking about risk Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 9- 2 Irwin/McGraw-Hill Topics Covered Rates of Return 73 Years of Capital Market History Measuring Risk Risk & Diversification Thinking About Risk