《财务管理》课程PPT教学课件（英文版）Chapter 06 Risk and Rates of Return

For a Treasury security, what is the required rate of return Required Risk-free rate of s rate of return return Since treasuries are essentially free of default risk the rate of return on a Treasury security is considered the “risk-fre” rate of return

For a Treasury security, what is the required rate of return? Since Treasuries are essentially free of default risk, the rate of return on a Treasury security is considered the “risk-free” rate of return. Required rate of return = Risk-free rate of return

For a corporate stock or bond, what is the required rate of return?

For a corporate stock or bond, what is the required rate of return?

For a corporate stock or bond, what is the required rate of return? Required rate of return

For a corporate stock or bond, what is the required rate of return? Required rate of return =

For a corporate stock or bond, what is the required rate of return? Required Risk-free rate of= rate of return return

For a corporate stock or bond, what is the required rate of return? Required rate of return = Risk-free rate of return

For a corporate stock or bond, what is the required rate of return? Required Risk-free Risk rate of= rate of+ premium return return How large of a risk premium should we require to buy a corporate security?

For a corporate stock or bond, what is the required rate of return? How large of a risk premium should we require to buy a corporate security? Required rate of return = + Risk-free rate of return Risk premium