公司理财英文版

11.1 Individual Securities
Key Terms expected return 期望报酬率 variance 方差 standard deviation 标准差 covariance 协方差 correlation 相关性 beta coefficient 系数
Chapter Outline
11.1 Individual Securities 11.2 Expected Return, Variance, and Covariance 11.3 The Return and Risk for Portfolios 11.4 The Efficient Set 11.5 Riskless Borrowing and Lending 11.6 Announcements, Surprises, and Expected Return 11.7 Risk: Systematic and Unsystematic 11.8 Diversification and Portfolio Risk 11.9 Market Equilibrium 11.10 Relationship between Risk and Expected Return (CAPM)
odd
来自Stange, unusual Seperated from a part or set to which it belongs to eg. two odd socks That can’t be divided exactly by 2 Not happening regularly eg. He likes the odd drinks.
Return and Risk: The Capital Asset Pricing Model (CAPM)
Wisdom

Don’t put all your eggs in one basket.
---- Anonymous

The reason why corporations do not enter gambles with volatile payoffs and small positive expected returns is that managers know that generally volatility matters.
“Better odds” means that you would expect a much higher probability of winning back your bet. How much you will be willing to risk, given a set probability of winning or losing, depends on your character--- you may be a risk-lover or you may be risk averse.
In general, in order to take a higher risk, you would expect a much greater potential payoff. Consider a lottery where each ticket costs $2000. Would you buy a ticket if the odds were the same as in the lottery where the ticket costs $20? Probably not---you would expect much better odds of winning in order to risk such a big amount of money.


Near in number eg. They lived abroad for 30 odd years. Odd jobs: small practical jobs that you do in your home
odds


The possibility that something will or will not be happen eg. The odds are that he will fail the exam This possiblity expressed in numbers when making a bet 打赌的赔率 eg. If you bet $1 on a horse with the odds at 10 to 1 and the horse wins, you get $11 back.
---- Rene M. Stulz
Mini Case
Risk and return are concepts that we deal with every day. For many people it is quite acceptible to risk $20 every week in the lottery, in view of potential returns of hundreds of thousands (or even millions) of dollars. When you buy a lottery ticket, the risk of losing your $20 is very high (how often have you won anything at lotto).

The characteristics of individual securities that are of interest are the:

Expected Return Variance and Standard Deviation Covariance and Correlation (to another security or index)