Valutico

FEBRUARY 13, 2025

Book a demo here to see how Valutico can help you. Interpreting beta values is crucial for investors to understand an asset’s risk exposure and its relationship with the overall market. Therefore, recalculating beta periodically or when significant events occur is advisable for accurate risk assessment.

Beta 52

Beta Covariance Risk-free Rate Specific Risk 52

Andrew Stolz

MARCH 20, 2020

The formula implies the return an investor expects from a risk-free investment plus the return from the stock in relation to market volatility. The market risk premium is calculated from a market rate of return less a risk-free rate. The formula is expressed in the following.

Beta 52

Beta Capital Structure Risk-free Rate Weighted Average Cost of Capital 52

Valutico

OCTOBER 20, 2022

Rf = Risk-free Rate. Rm – Rf) = Equity Market Risk Premium. Cp = Cost of Equity Premium. Try booking a demo , if this applies to you. The details of how the CAPM works is beyond the scope of this article but in short, the formula is as follows: Ce = Rf + B x (Rm – Rf) + Cp. Ce = Cost of Equity.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 52