Risk and return are inextricably linked. The 14th edition provides a rigorous yet accessible derivation of the CAPM, explaining how diversification eliminates unique risk, leaving investors compensated only for market risk (beta).
| Week | Topics | Key Deliverable | | :--- | :--- | :--- | | 1-2 | Ch. 1-4 (Value basics) | Build a discounted cash flow model from scratch in Excel | | 3-4 | Ch. 5-6 (NPV vs. IRR) | Resolve a mutually exclusive project conflict using crossover rate | | 5-6 | Ch. 7-9 (Risk & CAPM) | Calculate WACC for a real public company (e.g., Coca-Cola) | | 7-8 | Ch. 10-12 (Budgeting) | Build a decision tree for a R&D project | | 9-10 | Ch. 13-16 (Structure & payout) | Write a 1-page memo: "Should this firm issue debt or equity?" | | 11-12 | Ch. 17-19 (Options) | Value a real option (e.g., vacant land) using Black-Scholes | | 13-14 | Ch. 20-22 (Mergers & governance) | Perform merger accretion/dilution analysis | principles of corporate finance 14th edition