Andrew Stolz

AUGUST 5, 2020

If an investor moves money from the risk-free asset into the stock market, they should expect to earn a return in excess of the risk-free rate, what is called an equity risk premium. Investments are exposed to two types of risk: systematic and unsystematic. What Impacts the Capital Asset Pricing Model?

Risk-free Rate 52

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

Valutico

FEBRUARY 13, 2025

Market Risk-Free Rate: Beta calculations often involve comparing the asset’s returns to a risk-free rate, such as the yield on a government bond with a similar maturity. The risk-free rate serves as the baseline return with no market risk and provides context for assessing an asset’s risk premium.

Beta 52

Beta Covariance Risk-free Rate Specific Risk 52

Reynolds Holding

FEBRUARY 23, 2025

Regulatory changes introduce uncertainty, and their effects are further confounded by the ever-present unpredictability of markets even known variations, whether from unpredictability in inflation and interest rates driven by the Fed, or the basic requirements for capital-raising and deployment set by the SEC equate to risk.

Systematic Risk 45

Systematic Risk Marketability Equity Risk Premium 45