Banking Beta Marketability Risk-free Rate 
Valutico
FEBRUARY 27, 2024
More importantly, we’ll dig deeper into how discount rates can influence investment choices and how they’re used to figure out a company’s worth. What is a discount rate? The “discount rate” does two main things. For central banks like the Federal Reserve, it helps control the economy.
Brian DeChesare
AUGUST 31, 2022
Traditionally, if someone asked the “ sales & trading vs. investment banking ” question, the response was easy: “Do banking unless you really, really like trading and could not imagine doing anything else.”. The time to expiration or maturity is further away – because there’s more time for the stock price to go up.
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Valutico
APRIL 17, 2023
The WACC formula derives the current cost of each form of finance, starting with the risk-free rate, the expected return on equity, and the costs associated with debt financing. The required rate of return for equity (Re) is generally calculated using the Capital Asset Pricing Model (CAPM). A beta of 1.0
Valutico
APRIL 17, 2023
The WACC formula derives the current cost of each form of finance, starting with the risk-free rate, the expected return on equity, and the costs associated with debt financing. The required rate of return for equity (Re) is generally calculated using the Capital Asset Pricing Model (CAPM). A beta of 1.0
Valutico
APRIL 12, 2023
The WACC formula derives the current cost of each form of finance, starting with the risk-free rate, the expected return on equity, and the costs associated with debt financing. The required rate of return for equity (Re) is generally calculated using the Capital Asset Pricing Model (CAPM). A beta of 1.0
Musings on Markets
JULY 13, 2022
I know that there are some of you, who distrust ratings agencies, arguing that they have regional and other biases and/or that they do not adjust ratings in a timely fashion. Country Risk: Equity Risk For equity investors, the price of risk is captured by the equity risk premium, and equity risk premiums will vary across countries.
Andrew Stolz
MARCH 20, 2020
A firm borrows from banks or bondholders and it has to pay the interest. The formula implies the return an investor expects from a risk-free investment plus the return from the stock in relation to market volatility. The market risk premium is calculated from a market rate of return less a risk-free rate.
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