• The Open University

Corporate Finance: Measuring Risk and Return

Learn about the financial theories behind risk and return and their importance to investing.

Financial trading room

  • Duration

    4 weeks

  • Weekly study

    14 hours
Overview
Requirements
Educators

Build your knowledge of key concepts related to risk and return

On this course, you’ll learn how to estimate the cost of capital underlying the discount rate used in project appraisal and company valuation, and the factors to take into account when determining the best debt, equity mix and dividend policy.

You’ll take an introductory look at risk and return before addressing more formal theories and results, such as how to determine the rate of return and risk of a portfolio of investments. Using the capital asset pricing and dividend valuation models, you’ll learn to estimate the rate of return required by equity investors at an individual company level.

What topics will you cover?

  • Risk and return for an individual share
  • Portfolio theory
  • The cost of equity

Learning on this course

On every step of the course you can meet other learners, share your ideas and join in with active discussions in the comments.

Who is the course for?

This course is aimed at everyone who works in areas such as investment banking, portfolio management, corporate finance, treasury, law and consultancy.

What software or tools do you need?

You will need to be able to install and run additional software on a desktop or laptop computer with either an up-to-date version of Windows or macOS. The screen of the device must have a resolution of at least 1024 pixels horizontally and 768 pixels vertically.

You will also need a microphone and speakers/headphones to participate in online discussions.

Who will you learn with?

Henry Lahr

I am a Senior Lecturer in Finance at the Open University and lead its MSc in Finance. My research is on the financing of innovative businesses, venture capital and frictions in financial markets.

Kevin Amor

I am a Chartered Accountant who, before moving into teaching, worked in the real estate investment and development sector. I have also been a director on a number of investment funds.

Who developed the course?

The Open University

As the UK’s largest university, The Open University (OU) supports thousands of students to achieve their goals and ambitions via supported distance learning, helping to fit learning around professional and personal life commitments.

  • Established

    1969

  • Location

    Milton Keynes, UK

  • World ranking

    Top 510Source: Times Higher Education World University Rankings 2020

Learning on FutureLearn

Your learning, your rules

  • Courses are split into weeks, activities, and steps to help you keep track of your learning
  • Learn through a mix of bite-sized videos, long- and short-form articles, audio, and practical activities
  • Stay motivated by using the Progress page to keep track of your step completion and assessment scores

Join a global classroom

  • Experience the power of social learning, and get inspired by an international network of learners
  • Share ideas with your peers and course educators on every step of the course
  • Join the conversation by reading, @ing, liking, bookmarking, and replying to comments from others

Map your progress

  • As you work through the course, use notifications and the Progress page to guide your learning
  • Whenever you’re ready, mark each step as complete, you’re in control

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