Risk and Return: How to Identify, Measure, and Incorporate Into Capital Budgeting Decisions

School of Hotel Administration

How long?

  • online
  • on demand

School of Hotel Administration

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Full disclaimer.

Who should attend

Non-financial managers who will participate in conversations about spending and budget allocation who need to understand how risk and return affect internal financial management decisions.

About the course

Every financial decision a firm makes is a balancing act between risk and return. Funded projects can return significant revenue to the company. The risk is that the cost of the project may exceed the return, especially when the need to compensate capital providers is factored in. Being able to accurately assess both the risk and potential return of capital budgeting projects is an important part of your role as a manager.

Your work in this course will include learning how to calculate the hurdle rate, which is the minimum value a project must return, and then how to forecast the expected return. You will get to know the different asset classes and how to think about them in terms of the associated risks.

The tools from this course will help you measure risk and calculate the weighted average of the required returns as a way to ensure that your company chooses the right capital projects.

Key Benefits

Participants who complete this course will be able to…

  • Explain how risk enters into the capital budgeting decision and the impact it will have on the ultimate value of the investment under consideration
  • Interpret what you read in the Wall Street Journal

Experts

Steven Carvell

Dr. Steven Carvell, a professor of finance at the School of Hotel Administration, has 30+ years of extensive service at the School and University including: Associate Dean of Academic Affairs, Academic Director of the Pillsbury Institute of Entrepreneurship, and the Cornell University Internation...

Scott Gibson

Scott Gibson is the J.E. Zollinger Professor of Finance at the College of William and Mary Mason School of Business. His current research interests include optimal financing strategies for hospitality firms and the effect of institutional investor trading behavior on securities prices. His resear...

Videos and materials

Risk and Return: How to Identify, Measure, and Incorporate Into Capital Budgeting Decisions at School of Hotel Administration

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Disclaimer

Coursalytics is an independent platform to find, compare, and book executive courses. Coursalytics is not endorsed by, sponsored by, or otherwise affiliated with any business school or university.

Full disclaimer.

Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.

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