Is the market risk premium a parameter
Is the market risk premium a parameter, for the world economy or for the national economy?
Expert
No. This risk premium is the return differential (above the return which can be acquired by investing in government bonds) which an investor needs for stock market investment. This is not a characteristic parameter of an economy as everyone has his own risk premium. The average market risk premium value is unknown and this cannot be considered as being the one of a representative investor.
What are Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)?
Exploitation of favorable market conditions: The firms after estimating WCR are in a position to clearly identify their status of excess current assets. After this realization they can use this knowledge to encash conditions arising in market even for
Types of agency: Specific types of Agency include:A) Auctioneers: Are an agent of vendor until the fall of the hammer when they become an agent for the purchaser.B) Q : Is book value the excellent proxy to Is book value the excellent proxy to the value of the shares?
Is book value the excellent proxy to the value of the shares?
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Is this correct to use in the valuation of the shares of a certain company the “the real net assets value” which, as per to the Institute of Accounting and Auditing (ICAC), shows the “book value of shareholder’s equity, corrected through increa
Do expected equity flows coincide along with expected dividends?
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Explain lognormal random walk based on Brownian motion.
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