Business Finance: Risk Analysis

Audience

Managers and project managers who want to identify and calculate investment risk.

Objective

• Calculate an expected rate of return.
• Calculate the standard deviation on a potential investment.
• Calculate the coefficient of variation.
• Identify the purpose of a correlation coefficient.
• Calculate the expected rate of return on a stock portfolio.
• Identify impacts on rates of return.
• Calculate financial ratios.

Topics Include

Unit 1: Stand-Alone Risk

• Identify two types of risk.
• Calculate an expected rate of return.
• Calculate the standard deviation on a potential investment.
• Calculate the coefficient of variation.
• Simulation Overview:
• In this simulation you will meet with Monica Washington one of Icon's Market Analysts. She will be giving you a series of exercises to identify your knowledge of stand-alone risk. Through her questions and your answers you will gain a better understanding of probability analysis and rate of return and calculating risk.

Unit 2: Portfolio Risk

• Identify the purpose of a correlation coefficient.
• Calculate the expected rate of return on a stock portfolio.
• Identify the purpose of using beta coefficients.
• Calculate a stock portfolio's beta coefficient.
• Simulation Overview:
• In this simulation you will meet with Caroline Harris one of Icon's Senior Budget Accountants. She will be giving you a series of exercises to identify your knowledge of portfolio risk. Through her questions and your answers you will gain a better understanding of risk and diversification rate of return on stock portfolios and the Capital Asset Pricing Model.

Unit 3: Rates of Return and Risk

• Identify impacts on rates of return.
• Identify financial ratios.
• Calculate financial ratios.
• Simulation Overview:
• In this simulation you will meet with Travis Peterson Icon's Director of Finance. He will be giving you a series of exercises to identify your knowledge of ratio analysis. Through his questions and your answers you will gain a better understanding of five different types of ratios: liquidity asset utilization debt management profitability and market value ratios.

Duration

4

Minimum Requirements

The CDROM version of this course requires:

• At least a 486DX 33Mhz CPU.
• Microsoft Windows 3.1 or higher and a Microsoft compatible mouse.
• At least 8MB RAM.
• At least VGA graphics capability with a minimum 512K video RAM (1MB video RAM recommended).
• At least a double speed CDROM drive.
• An MPC compliant sound card with attached speakers or headphones is recommended (Currently only the CDROM version supports audio).

• At least a 486DX 33Mhz CPU.
• Microsoft Windows 3.1 or higher and a Microsoft compatible mouse.
• At least 8MB RAM and 22MB available hard disk space or file server space.
• At least VGA graphics capability with a minimum 512K video RAM (1MB video RAM recommended).

Media