Finance Midterm #2

Card Set Information

Author:
tgrldy2026
ID:
111144
Filename:
Finance Midterm #2
Updated:
2011-10-22 17:46:45
Tags:
finance
Folders:

Description:
SJSU BUS 170 Finance midterm #2
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user tgrldy2026 on FreezingBlue Flashcards. What would you like to do?


  1. Systematic Risk
    the failure of one company leads to the failure of others, ths risk can't be diversified away.
  2. Risk
    the potential for unexpected events to occur.
  3. risk aversion
    the tendency to avoid additional risk.
  4. risk-return relationship
    most people will demand a higher rate of return if there is a higher risk.
  5. uncertainty
    chance, or probability, of an unexpected outcome.
  6. expected return
    the mean of the probability distribution of possible outcomes.
  7. risk tolerant
    more willing to take on risk.
  8. What does standard devieation indicate?
    the likelihood that an outcome different from what's expected will occur.
  9. standard deviation
    a numerical indicator of how widely dispersed the possible values are around a mean.

    more dispersed = higher std. dev. = more risk
  10. Expected Value (Mean) Equation
    mu = Sum(V x P)
  11. Standard Deviation Formula
    sigma = SQRT[Sum P(V - mu)2]

What would you like to do?

Home > Flashcards > Print Preview