Listening Log 2

Listening Log 2
Business Finance
Professor : Woochan, Kim
Class : T/TH 14:00-17:00 UTC in UT

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Today I learned about valuation of bonds and valuation of stocks in finance class. The common stock holders receive type of Cash dividend and the price at which she can sell the stock. We call this a dividend discount model as that value of a stock is equal to the discounted present value of all future dividends. This is so even if you sell the share in a year or two. We can make this be simplified the equation. That is Zero growth model, Constant growth model and Differential growth model. Contribution to the market risk is that because people should only be concerned about market risk, and what matters is how much that individual asset contributes to the market risk. Note that standard deviation is no longer a good measure since it includes diversifiable risk, which does not matter once people hold a diversified portfolio.

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In this week, the title is so difficult for me to understand all of the class. But I tried to concentrate to professor during the class and asked some questions after the class. I think that it is so good experience for me to attend the lecture because I can learn how the other students do their study and what they think about some topics. It is enough benefit to me. I will do my best!