Chapter Outline Expected Returns and Variances Portfolios Announcements, Surprises, and Expected Returns Risk: Systematic and Unsystematic Diversification and Portfolio Risk…

13-* Expected Returns Expected Rate of Return All possible outcomes and probabilities known Kμ = E(R) = P1K1 + P2K2 + P3K3 Sample taken of past returns _ K = ΣK/n 13-*…

Key Concepts and Skills Know how to calculate expected returns Understand the impact of diversification Understand the systematic risk principle Understand the security market…

Chapter 13 Risk and Return Chapter Outline Expected Returns and Variances Portfolios Announcements, Surprises, and Expected Returns Risk: Systematic and Unsystematic Diversification…

Return, Risk, and the Security Market Line Return, Risk, and the Security Market Line Expected Returns Expected returns are based on the probabilities of possible outcomes…

Chapter 11 Risk and Return!!! Key Concepts and Skills Know how to calculate expected returns Understand the impact of diversification Understand the systematic risk principle…

Key Concepts and Skills Know how to calculate expected returns Understand the impact of diversification Understand the systematic risk principle Understand the security market…

Chapter 13 Risk and Return Chapter Outline Expected Returns and Variances Portfolios Announcements, Surprises, and Expected Returns Risk: Systematic and Unsystematic Diversification…

Chapter Outline Expected Returns and Variances Portfolios Announcements, Surprises, and Expected Returns Risk: Systematic and Unsystematic Diversification and Portfolio Risk…

Investment Risk Investment Risk Eric Higgins Department of Finance, KSU Investing Investing Definition of an investment: The current commitment of dollars for a period of…