Site MapHelpFeedbackIntroduction to Risk, Return, and the Opportunity Cost of Capital
Introduction to Risk, Return, and the Opportunity Cost of Capital


This chapter provides a historical overview of return and risk for various securities like stocks, bonds, and T-bills. It lays the foundation for understanding risk and return, which is crucial for financial decision- making. It provides a method for estimating the opportunity cost of capital using historical data. It shows how to calculate the expected return and the standard deviation of returns for a portfolio. Finally, the concept of beta as a measure of risk is introduced in this chapter.











Brealey: Prin Corp Finance, 9eOnline Learning Center

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