Market Risk Marketability Risk Premium 
Musings on Markets
FEBRUARY 8, 2025
In the first five posts, I have looked at the macro numbers that drive global markets, from interest rates to risk premiums, but it is not my preferred habitat. The second set of inputs are prices of risk, in both the equity and debt markets, with the former measured by equity risk premiums , and the latter by default spreads.
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. Investments are exposed to two types of risk: systematic and unsystematic. E(r) = Rf + ??(Rm
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Valutico
FEBRUARY 27, 2024
The formula for WACC is: WACC = (E/V x Re) + ((D/V x Rd) x (1-T)) E = market value of equity D = market value of debt V = total market value of the firm’s equity and debt Re = cost of equity Rd = cost of debt T = tax rate Check out more insights on the concept of WACC here.
Equidam
APRIL 26, 2025
This approach encourages dialogue focused on the business fundamentals the team, the market opportunity, the product, the financial projections rather than anchoring the conversation to arbitrary figures potentially derived from selectively chosen, and often inappropriate, market comparisons.
Equilest
JANUARY 3, 2023
This theory is based on the idea that several factors, including economic and market conditions, determine a stock's price. The APT is a multi-factor model that seeks to explain the behavior of stock prices based on various economic and market conditions. First, we need to estimate the factor loadings for each risk factor.
Musings on Markets
FEBRUARY 10, 2021
Capital Constrained Clearing Rate : The notion that any investment that earns more than what other investments of equivalent risk are delivering is a good one, but it is built on the presumption that businesses have the capital to take all good investments. US , Europe , Emerging Markets , Japan , Australia/NZ & Canada , Global ) 2.
Valutico
DECEMBER 12, 2023
New Emerging Market Data (From EMIS): What? We’ve integrated new emerging market transaction data from EMIS, a significant enhancement covered by major news outlets like Yahoo Finance and Asia One. New and existing customers can reach out to upgrade and access this valuable data that opens doors to critical insights.
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