Shall we use the arithmetic mean or the geometric one
The market risk premium is the difference between the historical return on the stock market and the return on bonds. But how many years does “historical” imply? Shall we use the arithmetic mean or the geometric one?
Expert
The risk premium that is relevant for the calculation of the required return to shares is one explained in A78 and this does not have much to do either along with the historic one or with the implicit or expected ones.
An investment bank computed my WACC. The report is as: “the definition of the WACC is defined as WACC = RF + βu (RM – RF); here RF being the risk-free rate and βu the unleveraged beta and RM the market risk rate.” It is differ from what we
What are the different types of mathematics found in quantitative finance?
Please Assist with the attached Data Case Assignment
What is a 3 x 1 Split?
Calculated betas give different information if they are acquired by using weekly, monthly or daily data.
Why do a Split?
What repercussions do variations in the oil price have on the value of a company?
Problem 21-1 Valuation Harrison Corporation is interested in acquiring Van Buren Corporation. Assume t
Who was the first to quantify the idea of Brownian motion?
Explain breakthroughs on low-discrepancy sequences.
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