Documents CORPORATE FINANCIAL THEORY Lecture 2. Risk /Return Return = r = Discount rate = Cost of Capital...

Slide 1 CORPORATE FINANCIAL THEORY Lecture 2 Slide 2 Risk /Return Return = r = Discount rate = Cost of Capital (COC) r is determined by risk Two Extremes Treasury Notes are…

Documents 1 CHAPTER 9 Risk and Rates of Return Stand-alone risk (statistics review) Portfolio risk (investor...

Slide 1 1 CHAPTER 9 Risk and Rates of Return  Stand-alone risk (statistics review)  Portfolio risk (investor view) -- diversification important  Risk & return:…