Equity Risk Premium Specific Risk Weighted Average Cost of Capital 
Valutico
FEBRUARY 27, 2024
Different types of discount rates such as risk-free rate, cost of equity, or cost of debt, are used contextually in financial analysis. In DCF analysis, the Weighted Average Cost of Capital (WACC), representing the average return required by all stakeholders, is commonly used as the discount rate.
Andrew Stolz
AUGUST 5, 2020
If an investor moves money from the risk-free asset into the stock market, they should expect to earn a return in excess of the risk-free rate, what is called an equity risk premium. Unsystematic risks are risks specific to a particular stock, which is why they are also called, company-specific risk.
Expert insights. Personalized for you.
52 
Let's personalize your content