In this video, I explain the guidelines on how to estimate the risk-free rate when implementing the CAPM to calculate cost of equity. Specifically, I highlight the forward-looking nature of CAPM, and how, therefore, the choice of risk-free rate should depend on the life of the investment being undertaken.
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Implementing CAPM: How to Estimate the Risk-Free Rate | The General Approach
- Рет қаралды 94
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