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5 Analysis of Risk and Return
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Figure 5.1 Continuous Probability Distributions for the Expected Returns from Investments in the Duke and TI Stocks CONTEMPORARY FINANCIAL MANAGMENT / MOYER © 2003 South-Western
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Figure 5.2 Areas under the Normal Probability Distribution
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Figure 5.3 Risk of a Project over Time: Tandy Corporation
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Figure 5.4 Yield Curves Showing the Term Structure of Interest Rates for U.S. Treasury Securities CONTEMPORARY FINANCIAL MANAGMENT / MOYER © 2003 South-Western
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Figure 5.5 Conceptual Risk-Return Relationship
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Figure 5.6 Illustration of Diversification and Risk Reduction: Alcoa
CONTEMPORARY FINANCIAL MANAGMENT / MOYER © 2003 South-Western
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Figure 5.7 Illustration of (a) Perfect Positive, (b) Perfect Negative,
and (c) Zero Correlation for Two Investments CONTEMPORARY FINANCIAL MANAGMENT / MOYER © 2003 South-Western
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Figure 5.8 Expected Return from a Portfolio of the Stocks of American Electric Power (A) and Boeing (B) CONTEMPORARY FINANCIAL MANAGMENT / MOYER © 2003 South-Western
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Figure 5.10 Portfolio Opportunity Set
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Figure 5.11 Capital Market Line
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Figure 5.12 Unsystematic Risk and Portfolio Diversification
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Figure 5.13 The Security Market Line (SML)
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Table 5.7 Interpretation of Selected Beta Coefficients
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Figure 5.15 The Security Market Line in Terms of Beta
CONTEMPORARY FINANCIAL MANAGMENT / MOYER © 2003 South-Western
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