1 The Investment Principle: Risk and Return Models “You cannot swing upon a rope that is attached only to your own belt.”
Models of Risk 2003,3,24. What is risk? Risk: to expose to hazard or danger Risk = riscare (dare to do something) Risk = 危機 (danger and opportunity)
THE INVESTMENT PRINCIPLE: RISK AND RETURN MODELS “You cannot swing upon a rope that is attached only to your own belt.” Aswath Damodaran 0.
The Relationship Between Risk and Return. Goal of Financial Management: Maximize the value of the firm as determined by: the present value of its expected.
1 Risk and Return Models: Equity and Debt. 2 First Principles Invest in projects that yield a return greater than the minimum acceptable hurdle rate.
