2021 Beta Equity 
Musings on Markets
FEBRUARY 8, 2022
At the risk of provoking the ire of those who dislike portfolio theory, the most widely model for risk, in practice, is the capital asset pricing model, and beta is the relative risk measure. At the start of 2022, the ten sectors (US) with the highest and lowest relative risk (unlettered betas), are shown below.
Musings on Markets
FEBRUARY 10, 2021
Cost of raising funds (capital) : Since the funds that are invested by a business come from equity investors and lenders, one way in which the hurdle rate is computed is by looking at how much it costs the investing company to raise those funds. More on that issue in a future data update post.)
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Musings on Markets
JULY 13, 2022
lived under full democracy, in 2021, with large differences across regions. Country Risk: Equity Risk For equity investors, the price of risk is captured by the equity risk premium, and equity risk premiums will vary across countries.
Global Finance
JUNE 4, 2024
Equity trades will now be settled on the same day they are made. Indian exchanges started T+1 in 2021 with a similar phase-in, starting with blue chips, and was fully implemented by early 2023. US exchanges are transitioning to T+1 from a T+2 cycle. The EU and the UK are still evaluating a switch to T+1, with no firm date announced.
Musings on Markets
JANUARY 5, 2024
Beta & Risk 1. Return on Equity 1. Equity Risk Premiums 2. Costs of equity & capital 4. Costs of equity & capital 4. Costs of equity & capital 1. Fundamental Growth in Equity Earnings 2. Return on Equity 2. Standard Deviation in Equity/Firm Value 2. Debt Details 1.
Brian DeChesare
AUGUST 31, 2022
Convertible bonds are hybrid instruments with elements of debt and equity, and some groups that trade convertible bonds also combine elements of S&T and IB. If you’re using a strategy like long/short equity , you could long or short a company’s stock, and your results would depend heavily on the stock market’s overall direction.
Musings on Markets
JANUARY 31, 2024
In my last three posts, I looked at the macro (equity risk premiums, default spreads, risk free rates) and micro (company risk measures) that feed into the expected returns we demand on investments, and argued that these expected returns become hurdle rates for businesses, in the form of costs of equity and capital.
Expert insights. Personalized for you.
95 
Let's personalize your content