Introduction

• Risk vs Return
  • Example: Probabilities and corresponding returns
  • Expected Return and standard deviation
• Combining Two Risky Investments
• Efficient Frontier of Risky Investments
• Efficient Frontier of all Investments
• Systematic vs Non-Systematic Risk
• CAPM
  • Assumptions
  • Alpha
• Arbitrage Pricing Theory
• Risk vs Return for Companies
• Bankruptcy Costs
• Approaches to Bank Risk Management
• Credit Ratings
  • Subdivisions