Chapter 6: Objectives Inflation and rates of return How to measure risk (variance, standard deviation, beta) How to reduce risk (diversification) How to price risk (Security market line, CAPM)

The Time value of money Compounding and Discounting Single Sums

Financial forecasting 1) Project sales revenues and expenses

Financial statement analysis Are our decisions maximIzing shareholder wealth?

Corporate restructuring 1960s- Mergers of unrelated firms formed huge conglomerates 1980s-Investors purchased conglomerates and sold off the pieces as independent companies. 1990s- Strategic mergers of related firms to create synergies

International Business finance Exchange Rate: the price of one currency in terms of another

Innovations in Risk Management Futures contract a contract to buy or sell a stated commodity or financial claim at a specified price at some specified future time

一、定义风险和收益 二、用概率分布衡量风险 三、风险态度 四、证券组合中的风险和收益 五、投资分散化 六、资本-资产定价模型 (CAPM)

长期证券的定价 一、不同的价值概念 二、债券定价 三、优先股定价 四、普通股定价 五、报酬率 (或收益率)

一、利率 二、单利 三、复利 四、贷款的分期偿还