Introduction to Finance: Risk and Return

This lecture introduces the concepts of finance, focusing on risk and return. It covers topics such as free cash flow, dividends, reinvestment, NPV, EBIT, and the relationship between risk and return in investment portfolios. The instructor explains the calculation of rates of return, expected growth, and volatility in different securities. Historical data on stock market returns and the tradeoff between risk and return are analyzed to understand the financial landscape.