Lecture

Principles of Finance: Risk and Return

Description

This lecture covers the concepts of risk and return in finance, explaining how different securities have varying initial prices, dividend amounts, and future values. It delves into calculating rates of return, average annual returns, variance, volatility, and the historical tradeoff between risk and return. The lecture also explores portfolio returns, diversification, the impact of correlation on portfolio risk, and the implications of diversifiable versus systematic risk.

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