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Country Risk Premium (CRP) Definition
Country Risk Premium (CRP) is the additional return or premium demanded by investors to compensate them for the higher risk of investing overseas.
A risk premium is the return in excess of the risk-free rate of return that an investment is expected to yield.
Capital Asset Pricing Model (CAPM)
The Capital Asset Pricing Model is a model that describes the relationship between risk and expected return.
Equity Risk Premium Definition
An equity risk premium is an excess return that investing in the stock market provides over a risk-free rate.
International Capital Asset Pricing Model (CAPM) Definition
The international capital asset pricing model (CAPM) is a financial model that extends the concept of the CAPM to international investments.
Catch on to the CCAPM
The consumption capital asset pricing model smoothes over some of CAPM's weaknesses.
How Do I Calculate the Cost of Equity Using Excel?
Learn how to calculate the cost of equity in Microsoft Excel using the capital asset pricing model, or CAPM, including brief definitions of each component.
Investors Need a Good WACC
Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality.
Consumption Capital Asset Pricing Model – CCAPM Definition
The consumption capital asset pricing model is an extension of the capital asset pricing model that focuses on a consumption beta instead of a market beta.
Arbitrage Pricing Theory: It's Not Just Fancy Math
What are the main ideas behind arbitrage pricing theory? Find out how this model estimates the expected returns of a well-diversified portfolio.