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Data Update 6 for 2025: From Macro to Micro - The Hurdle Rate Question!

Musings on Markets

In this context, the cost of capital become a measure of the cost of funding a business: In dividend decision s, i.e., the decisions of how much cash to return to owners and in what form (dividends or buybacks), the cost of capital is a divining rod.

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Data Update 4 for 2024: Danger and Opportunity - Bringing Risk into the Equation!

Musings on Markets

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.