Artículos relacionados a Searching for the Right Market Risk Premium

Searching for the Right Market Risk Premium - Tapa blanda

Braun, Steffi M.

 
9783836454995: Searching for the Right Market Risk Premium
Tapa blanda
ISBN 10: 3836454998 ISBN 13: 9783836454995
Editorial: VDM Verlag Dr. Mueller e.K., 2008

Sinopsis

The cost of equity is complex to estimate as investors require a premium for bearing risk. Finance experts have for years been dealing with a precise and practice-orientated model to estimate the cost of equity. In 1964/65, Sharpe and Lintner developed the Capital Asset Pricing Model, which is now widely accepted and used in finance practice. According to the CAPM, the cost of equity is calculated by adding a risk premium to the risk free rate. This risk premium includes the market risk premium. There exist several approaches how to estimate the market risk premium. They can be roughly categorized into historical approaches and forward-looking models.This book endeavours to summarize and classify existing models as well as to evaluate their theoretical background, accuracy, and practicability. It will present a clear understanding of the market risk premium and the pros and cons of the different calculation methods to conclude on the most appropriate approach to determine the market risk premium. The calculation models are evaluated according to predefined criteria and the most suitable from each category is chosen to be applied to Austria, Germany, and the United Kingdom.

"Sinopsis" puede pertenecer a otra edición de este libro.

Reseña del editor

The cost of equity is complex to estimate as investors require a premium for bearing risk. Finance experts have for years been dealing with a precise and practice-orientated model to estimate the cost of equity. In 1964/65, Sharpe and Lintner developed the Capital Asset Pricing Model, which is now widely accepted and used in finance practice. According to the CAPM, the cost of equity is calculated by adding a risk premium to the risk free rate. This risk premium includes the market risk premium. There exist several approaches how to estimate the market risk premium. They can be roughly categorized into historical approaches and forward-looking models. This book endeavours to summarize and classify existing models as well as to evaluate their theoretical background, accuracy, and practicability. It will present a clear understanding of the market risk premium and the pros and cons of the different calculation methods to conclude on the most appropriate approach to determine the market risk premium. The calculation models are evaluated according to predefined criteria and the most suitable from each category is chosen to be applied to Austria, Germany, and the United Kingdom.

"Sobre este título" puede pertenecer a otra edición de este libro.

Editorial
VDM Verlag Dr. Mueller e.K.
Año de publicación
2008
Idioma
Inglés
ISBN 10 
3836454998
ISBN 13 
9783836454995
Encuadernación
Tapa blanda
Número de páginas
100
Contacto del fabricante
no disponible
Persona responsable
no disponible