MindMap Gallery Value Assessment Foundation
This is a mind map about the basis of value assessment, the main contents include: Section 4 Bond and Stock Value Assessment, Section 3 Risk and Remuneration, Section 2 Money Time Value, Section 1 Interest Rate.
Edited at 2025-01-30 21:01:49Rumi: 10 dimensions of spiritual awakening. When you stop looking for yourself, you will find the entire universe because what you are looking for is also looking for you. Anything you do persevere every day can open a door to the depths of your spirit. In silence, I slipped into the secret realm, and I enjoyed everything to observe the magic around me, and didn't make any noise. Why do you like to crawl when you are born with wings? The soul has its own ears and can hear things that the mind cannot understand. Seek inward for the answer to everything, everything in the universe is in you. Lovers do not end up meeting somewhere, and there is no parting in this world. A wound is where light enters your heart.
Chronic heart failure is not just a problem of the speed of heart rate! It is caused by the decrease in myocardial contraction and diastolic function, which leads to insufficient cardiac output, which in turn causes congestion in the pulmonary circulation and congestion in the systemic circulation. From causes, inducement to compensation mechanisms, the pathophysiological processes of heart failure are complex and diverse. By controlling edema, reducing the heart's front and afterload, improving cardiac comfort function, and preventing and treating basic causes, we can effectively respond to this challenge. Only by understanding the mechanisms and clinical manifestations of heart failure and mastering prevention and treatment strategies can we better protect heart health.
Ischemia-reperfusion injury is a phenomenon that cellular function and metabolic disorders and structural damage will worsen after organs or tissues restore blood supply. Its main mechanisms include increased free radical generation, calcium overload, and the role of microvascular and leukocytes. The heart and brain are common damaged organs, manifested as changes in myocardial metabolism and ultrastructural changes, decreased cardiac function, etc. Prevention and control measures include removing free radicals, reducing calcium overload, improving metabolism and controlling reperfusion conditions, such as low sodium, low temperature, low pressure, etc. Understanding these mechanisms can help develop effective treatment options and alleviate ischemic injury.
Rumi: 10 dimensions of spiritual awakening. When you stop looking for yourself, you will find the entire universe because what you are looking for is also looking for you. Anything you do persevere every day can open a door to the depths of your spirit. In silence, I slipped into the secret realm, and I enjoyed everything to observe the magic around me, and didn't make any noise. Why do you like to crawl when you are born with wings? The soul has its own ears and can hear things that the mind cannot understand. Seek inward for the answer to everything, everything in the universe is in you. Lovers do not end up meeting somewhere, and there is no parting in this world. A wound is where light enters your heart.
Chronic heart failure is not just a problem of the speed of heart rate! It is caused by the decrease in myocardial contraction and diastolic function, which leads to insufficient cardiac output, which in turn causes congestion in the pulmonary circulation and congestion in the systemic circulation. From causes, inducement to compensation mechanisms, the pathophysiological processes of heart failure are complex and diverse. By controlling edema, reducing the heart's front and afterload, improving cardiac comfort function, and preventing and treating basic causes, we can effectively respond to this challenge. Only by understanding the mechanisms and clinical manifestations of heart failure and mastering prevention and treatment strategies can we better protect heart health.
Ischemia-reperfusion injury is a phenomenon that cellular function and metabolic disorders and structural damage will worsen after organs or tissues restore blood supply. Its main mechanisms include increased free radical generation, calcium overload, and the role of microvascular and leukocytes. The heart and brain are common damaged organs, manifested as changes in myocardial metabolism and ultrastructural changes, decreased cardiac function, etc. Prevention and control measures include removing free radicals, reducing calcium overload, improving metabolism and controlling reperfusion conditions, such as low sodium, low temperature, low pressure, etc. Understanding these mechanisms can help develop effective treatment options and alleviate ischemic injury.
Value Assessment Foundation
Section 1 Interest rate
Benchmark interest rates and their characteristics
Interest rate, also known as interest rate, interest rate = interest ¸ principal ´100%
The benchmark interest rate is based on the deposit and loan interest rate stipulated by the People's Bank of China to state professional banks and other financial institutions.
feature
Marketization: It must be determined by the market supply and demand relationship, which not only reflects the actual market supply and demand situation, but also reflects the market's expectations for future supply and demand situations.
Basic: in a basic position in the interest rate system and financial product price system
Transmission: The market signal reflected, or the regulatory signal sent by the central bank through the benchmark interest rate, can be effectively transmitted to other financial markets and financial product prices.
Factors affecting interest rates
Economic factors
Policy factors
Market factors
Interest rate r=r* (pure interest rate, real risk-free interest rate) RP (risk premium) =r* IP (inflation premium) DRP (default risk premium) LRP (liquidity risk premium) MRP (time risk premium)
The term structure of interest rates
Interest rate term structure refers to the relationship between the maturity rate and the term of bonds of different maturity at a certain point in time, reflecting the relationship between long-term interest rates and short-term interest rates.
Unbiased expectation theory
Viewpoint: The interest rate maturity structure depends entirely on the market's expectations of future interest rates, that is, the spot interest rate of long-term bonds is a function of the expected interest rate of short-term bonds
Assuming: There are certain expectations for future short-term interest rates, and the flow of funds between the long-term capital market and the short-term capital market is completely free.
Market segmentation theory
Viewpoint: Each type of investors fixedly prefers specific parts of the yield curve, thus forming a segmented market with a term as the division mark. The interest rate level is determined by the supply and demand relationship of each term market.
Assumption: It is believed that bond markets with different maturities are not related to each other, so that the problem of simultaneous fluctuations in bond interest rates for different maturities cannot be explained.
Liquidity premium theory
Liquidity premium theory is a combination of expectations theory and market segmentation theory
Viewpoint: The spot interest rate of long-term bonds is the average of the short-term expected interest rate in the future plus a certain liquidity risk premium
Section 2 Money Time Value
Concept of time value of currency
Replace the time value rate of currency with interest rates, rate of return, etc.
Compound interest final and present value
Compound interest final value: the sum of principal and interest calculated at a certain amount of time in the future, referred to as principal and interest sum
Compound interest present value: to obtain certain future principal and current principal
Quotation rate and effective annual rate
The shorter the interest calculation period, the more times the compound interest is calculated in a year, the larger the annual interest amount will be.
Quotation rate: Annual interest rate, also known as nominal interest rate
Interest rate for interest: Interest rate for interest = quotation rate ¸ Number of compound interest times per year
Valid annual interest rate: Valid annual interest rate = (1 Quote rate ¸m) m-1
Final and present value of annuity
Ordinary annuities, advance annuities, deferred annuities, perpetual annuities
Section 3 Risk and Remuneration
The meaning of risk
Risk definition under portfolio theory
Refers only to the systemic risk of the portfolio, neither to the risk of a single asset nor to the full risk of the portfolio
Risk definition under capital asset pricing theory
A process for the contribution of assets to portfolio risk, i.e. beta coefficient
Risk and reward of individual investment
Probability
The probability of an event that is inevitable is 1, and the probability of an event that is impossible is 0. Generally, the probability of a random event is between 0 and 1. The greater the probability, the greater the possibility of the event.
Discrete and continuous distribution
Discrete distribution: Random variables take only finite values, and there is a definite probability corresponding to these values.
Continuous distribution: Random variables take infinite values and all give corresponding probability
Expected value: Each value of a random variable, the weighted average of the weighted number with the corresponding probability, is called the expected value of a random variable, reflecting the average of the value of a random variable
Expected value = å (Pi·Ki), Pi represents the probability of the occurrence of the i-th result, and Ki represents the return rate of the i-th result
Discrete degree: the number of quantities that represent the degree of dispersion of random variables, the most commonly used are variance and standard deviation
Variance is a quantity used to represent the degree of dispersion between a random variable and a expected value. It is the average number from squared.
The greater the variance, the greater the risk
The standard deviation is the square root of the variance
The greater the standard deviation, the greater the risk
The coefficient of variation is the ratio of standard deviation to the mean, and is suitable for situations where the expected value is the same or different. The greater the coefficient of variation, the greater the risk.
Risk and rewards of portfolios
The expected rate of return of an investment portfolio is equal to the weighted average of the rate of return of each individual asset in the portfolio, and the risk of the portfolio is not the weighted average of the risk of each individual asset, and the portfolio can reduce the risk.
Expected rate of return and standard deviation of securities portfolios
Risk measurement of portfolios
Influencing factors: investment proportion, standard deviation, correlation coefficient
Investment ratio and effective set of two securities combinations
The impact of correlation on risk
Investment ratio and effective set of multiple securities portfolios
Capital Market Line
Systemic and non-systemic risks
Capital Asset Pricing Model
Measuring systemic risk
The beta coefficient is an indicator to measure the systemic risk of an asset
The size of a stock's beta value depends on
The correlation of this stock to the entire stock market
Its own standard deviation
Standard deviation of the entire market
β coefficient of the portfolio
β=1, the return rate of this asset is in the same direction and proportional change as the average return rate of the market
β<1, the fluctuation range of the return rate of the asset is less than the fluctuation range of the return rate of the market, and the systemic risk contained is less than the risk of the market combination
β>1, the fluctuation range of the return rate of the asset is greater than the fluctuation range of the return rate of the market, and the systemic risk contained is greater than the risk of the market combination
Securities Market Line
The relationship between necessary rewards and risks of individual assets or portfolios under market equilibrium conditions
When the expected rate of return > the necessary rate of return, investment should be made; when the expected rate of return = the necessary rate of return, you can choose to invest or not to invest in the project; when the expected rate of return < the necessary rate of return, investment should not be made.
Assumptions of Capital Asset Pricing Model
Section 4 Bond and Stock Value Assessment
Bond Value Assessment
Bond concept
Classification of bonds
Methods for assessing bond value
The expected rate of return on bonds
Common Stock Value Assessment
Methods for assessing the value of common stocks
Expected rate of return on common stocks
Value Assessment of Mixed Funding Tools
The special nature of preferred stocks
Methods for assessing the value of preferred stocks
Methods for evaluating the value of perpetual bonds
Financial cost management