Home » Downloads » Principles of Finance Principles of Finance Principles of Finance Principles of Finance :Prepare a PowerPoint Presentation to define the following terms, using graphs or equations to illustrate your answers where feasible. Risk in general; stand-alone risk; probability distribution and its relation to risk Expected rate of return, ^r Continuous probability distribution Standard deviation, σ; variance, σ2 Risk aversion; realized rate of return, r Risk premium for Stock i, RPi; market risk premium, RPM Capital Asset Pricing Model (CAPM) Expected return on a portfolio, r^p; market portfolio Correlation as a concept; correlation coefficient, ρ Market risk; diversifiable risk; relevant risk Beta coefficient, b; average stock’s beta Security Market Line (SML); SML equation Slope of SML and its relationship to risk aversion Equilibrium; Efficient Markets Hypothesis (EMH); three forms of EMH Fama-French three-factor model Behavioral finance; herding; anchoring Answer preview to principles of Finance 18 slides Get instant access to the full solution from yourhomeworksolutions by clicking the purchase button below $17.00 – Purchase Checkout Added to cart
