Fundamentals of Corporate Finance:
Fundamentals of Corporate Finance: Some Lessons From Capital Market History
Fundamentals of Corporate Finance: Some Lessons From Capital Market History
The process of asset valuation generally involves risky cash flows, so it is necessary to identify an appropriate risk-adjusted rate with which to discount them. In this chapter we begin the task of identifying the appropriate opportunity cost for risky assets. This process requires that we learn how to measure returns and risk, and that we understand the relationship between risk and return in the financial markets.
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