Finance Market Risk Risk-free Rate 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. The Discounted Cash Flow (DCF) method uses the discount rate to consider all future cash flows of a business when calculating its current value.
Andrew Stolz
AUGUST 5, 2020
It helps an investor understand what to expect to earn in relation to the risk-free rate and the market return. CAPM assumes that the minimum a rational investor would earn is the risk-free rate by buying the risk-free asset. What Impacts the Capital Asset Pricing Model?
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