FIN 605 – Financial Management in Organizations – Week 3

Week 3 – Analysis of Risk and Return

We dive into risk assessment and portfolio diversification. I understand now how systematic risk can affect securities and how inflation and interest rates can affect values. I also took what I learned here as an impetus to diversify my own private stock portfolio, which is mostly relegated to tech stocks. We learned about the Capital Asset Pricing Model (CAPM) and Beta. The concepts normally would confuse me, especially the mathematical notation, but I laid a lot of the functions out in Excel and made it much easier to understand.