- Define more precisely what we mean by ‘risk’ in a financial context
- Consider how investors react to the presence or threat of risk
- Develop a method of quantifying risk mathematically
- Look at the main factors contributing to investment risk in the real world
Access the course here or use the links below.
- 2 – Quantifying risk
- 2.1 Looking at each of the possible alternative outcomes2.2 Calculating returns
- 3 – Risk factors
- 3.1 Background3.2 Maturity3.3 Liquidity3.4 Variability of income3.5 Default or credit risk3.6 Event risk3.7 Interest rate risk
- 4 – Discounted cash flow and the net present value rule
- 4.1 Introduction4.2 Discounted cash flow4.3 Net present value
Course available under this Creative Commons License.