2022 Market Risk Risk-free Rate 
Equidam
JUNE 30, 2025
From 2008 until 2022, most central banks lowered interest rates to 1% or below, creating what economists call the Zero Interest Rate Policy (ZIRP). When the Federal Reserve began raising rates in March 2022, the music stopped abruptly. The 2008 financial crisis saw 36% down rounds.
Musings on Markets
JANUARY 28, 2024
In short, if you don't like betas and have disdain for modern portfolio theory, your choice should not be to abandon risk measurement all together, but to come up with an alternative risk measure that is more in sync with your view of the world.
Equidam
APRIL 22, 2025
10] , [23] , [2] Discount Rate: The rate used to discount future cash flows is typically the cost of equity, calculated via the Capital Asset Pricing Model (CAPM): Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium. [23] 23] Risk-Free Rate: Tied to government bond yields (e.g.,
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