Financial Management BUS 310 Jon Hunter

1
Financial ManagementBUS 310Jon Hunter
2
Time value of money

• Future value of a lump sum
• Present value of a lump sum
• Future value of an annuity
• Present value of an annuity
• Annuity due
• Amortized loans

3
Risk and rates of return

• Expected return
• Weighted return
• Risk
• Examples

4
Measuring risk

• Standard deviation
• How calculated
• What it means
• One standard deviation-67
• Two standard deviations-95
• Three standard deviations-98

5
Relationship between risk and return

• How does it affect our decisions
• Corporate finance officers
• Investment managers