FIGURE 12-1 Walgreens and Microsoft Stock Prices, 1996–2001 Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th.

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Presentation transcript:

FIGURE 12-1 Walgreens and Microsoft Stock Prices, 1996–2001 Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Figure 12-01

TABLE 12-1 Finding the Variances for the Returns on Walgreens and Microsoft Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Table 12-01

FIGURE 12-2 Normal Distribution Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Figure 12-02

TABLE 12-2 Distribution of Returns for Walgreens and Microsoft Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Table 12-02

TABLE 12-3 Historical Returns and Standard Deviations of Returns from Different Assets, 1996–2000 Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Table 12-3

FIGURE 12-3 Price Reactions in Efficient and Inefficient Markets* Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Figure 12-03

FIGURE 12-4 Stock Market Average Price Reaction to Positive and Negative Earnings Surprises Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Figure 12-04

TABLE 12-4 Portfolio Return Calculations Based on 50% Investment in Walgreens and 50% in Microsoft Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Table 12-04

FIGURE 12-5 Portfolio Returns When Investments Are Equally Weighted Between the Two Stocks Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Figure 12-05

FIGURE 12-6 Benefits of Diversification: Combining Two Risky Assests May Lead to Lower Portfolio Risk Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Figure (Figure continues on next slide)

FIGURE 12-6 (Continued) Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Figure continued

TABLE 12-5 Diversification Example Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Table 12-05

FIGURE 12-7 Risk and Portfolio Diversification Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Figure 12-07

FIGURE 12-8 Systematic and Unsystematic Risk Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Figure 12-08

FIGURE 12-9 Comparing Asset Returns Over Time with Those of the Market Portfolio Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Figure (Figure continues on next slide)

FIGURE 12-9 (Continued) Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Figure continued

TABLE 12-6 Example of Stock Betas Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Table 12-06

FIGURE LE12-1 Graph of R i = a + b R MKT + e Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Figure LE12-01

FIGURE LE12-2 Plots of Returns for Microsoft and the S&P 500 Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Figure LE12-02

TABLE LE12-1 How to Calculate a Beta Coefficient or Measure of Systematic Risk Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Table LE12-01

FIGURE LE12-3 Security Market Line Melicher & Norton/Finance: Introduction to Institutions, Investments, and Management, 11th edition Chapter 12, Figure LE12-03

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