Section outline

  • Lecture Contents:

    Return, Sources of risk, Measuring returns, Measuring risk, Realized risk and return from investing etc.

    Lecture Outcome:

    After studying these contents, students will be able to:

    1. Calculate important return and risk measures for financial assets, using the formulation appropriate for the task. 
    2. Use key terms involved with return and risk, including geometric mean, cumulative wealth index, inflation-adjusted returns, and currency-adjusted returns. 
    3. Understand clearly the returns and risk investors have experienced in the past, an important step in estimating future returns and risk.