1. Financial Instruments and Markets CHAPTER 5 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

15. TABLE 5-1 Rate of Return on Selected U.S. Securities, 1900 - 2007

17. Table 5-2 Selected S&P Debt-Rating Definitions

18. Table 5-2 ( continued )

25. FIGURE 5-1 If Your Grandmother Had Invested only a Dollar in 1900; Nominal Returns on U.S. Assets 1900-2007

26. FIGURE 5-2 Distribution of Annual Return on Stocks And Bonds, 1928-2007

27. FIGURE 5-2 (Continued) Source: Professor Aswath Damodaran’s Web site, pages.stern.nyu.edu/~adamodar/ .

36. FIGURE 5-3 Venture Capital Investment in U.S. Companies

51. FIGURE 5-4 Time Series of the Mean Price Index of the Shares of 161 Target Firms Involved in Successful Tender Offers Source: Michael Bradley, “Interfirm Tender Offers and the Market for Corporate Control,” Journal of Business 53, no.4 (1980).

58. FIGURE 5A-1 Forward Market Hedge

59. FIGURE 5A-1 (Continued)

60. FIGURE 5A-1 (Continued)

64. FIGURE 5A-2 Option Market Hedge

65. FIGURE 5A-2 (Continued)

66. FIGURE 5A-2 (Continued)