Definition Dividends Risk-free Rate 
Andrew Stolz
AUGUST 4, 2020
Definition of Equity Risk Premium. It is the difference between expected returns from the stock market and the expected returns from risk-free investments. What Impacts the Equity Risk Premium? Dividends . Dividends . How Do You Calculate Equity Risk Premium? Dividend model ?
Andrew Stolz
AUGUST 5, 2020
Definition of the Cost of Equity. To compensate for the risks that shareholders take, firms pay them in return. In other words, the cost of equity is the rate of returns a firm pays to its shareholders. Risk-free rate . The systematic risk of the security (Beta). Dividend per share .
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Brian DeChesare
AUGUST 31, 2022
But before delving into the best candidates for these roles, typical trades, careers, and more, let’s start with the basic definitions: What is a Convertible Arbitrage Hedge Fund? The risk-free rate is higher – because investors benefit from “delaying” their eventual purchase of the underlying shares when they earn higher interest elsewhere.
Musings on Markets
AUGUST 5, 2023
ERP: Definition and Determinants The place to start this discussion is with an explanation of what an equity risk premium is, the determinants of that number and why it matters for investors. The risk premium that you demand has different names in different markets.
Musings on Markets
FEBRUARY 8, 2022
Investors all talk about risk, but there seems to be little consensus on what it is, how it should be measured, and how it plays out in the short and long term. In closing, I will talk about some of the more dangerous delusions that undercut good risk taking.
Musings on Markets
JANUARY 12, 2021
If it looks like I am over reaching, I start my corporate finance class with the simple proposition that any decision that involves money is a corporate finance decision, and by that definition everything that businesses do falls under its umbrella. The links to all of these classes are at the end of this post.
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