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

Description

For the non-financial manager, this course introduces risk in capital budgeting, detailing precisely how it can be factored into budgeting decisions.

Managers in today’s firms tend to work closely with finance, so having fundamental understanding of finance is imperative. Risk and return are critical components of capital budgeting and ultimately impact the value of an investment. This two-week course prepares non-financial managers to identify project risks and weigh them against expected returns.

Who Should Enroll in This Course?

This course is designed for non-financial managers who are responsible for making integrated financial decisions and need to understand the interrelationship of risk and return when making capital budgeting decisions.

Enrollment

To register, contact an Enrollment Counselor at info@ecornell.com or 1-866-326-7635 (+1-607-330-3200 from outside the United States).

Certificate programs are eligible for eCornell Payment Plans. Discounts are available for military personnel, veterans, and Cornell University Alumni. eCornell programs are not eligible for financial aid or federal Pell Grants. Contact an enrollment counselor for more information.

Certificate Information

This course can be applied toward the following certificates:
 

• Financial Management
• Master Certificate in Hospitality Management
• Strategic Leadership for the Hospitality Professional
• Master Certificate in Hospitality Management

CEUs

HRCI Recertification

This program, <~CODE~>, has been approved for six (6) Strategic Management recertification credit hours toward SPHR and GPHR recertification and six (6) recertification credit hours toward PHR, SPHR, and GPHR recertification through the Human Resource Certification Institute. Please contact the Human Resource Certificate Institute (HRCI) for further information about certification or recertification.

Additional Information

Course Format

eCornell takes a problem-based approach to learning, and our courses are built around realistic case studies and scenarios. All courses are self-paced, and are facilitated by an eCornell instructor, who leads the online discussions and is available to answer any questions about the course content.

This course contains the following modules:

• Considering Investment Risk.
• Investors and Risk.
• Quantifying Risk and Return.
• Two Kinds of Risk - Systematic and Unsystematic Risk.
• How Firms Factor Risk into Capital Budgeting Decisions.
• Systematic Risk.
• Capital Asset Pricing Model.
• Risk and Capital Budgeting Decisions.

Benefits to the Learner

After completing this course, participants 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.

Authoring Faculty

Steven Carvell, Ph.D., Associate Professor and Associate Dean for Academic Affairs

Scott Gibson, Ph.D., Assistant Professor

Sponsoring School

Cornell University's School of Hotel Administration

Total Learning Time

Approximately 5-6 hours over a period of 2 weeks.

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• Raising Capital: The Process, the Players, and Strategic Considerations
• Making Capital Investment Decisions
• Understanding Financial Statements