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  1. Why is CAPM used to estimate Cost of Equity when Beta only measures systematic risk?

      Quote   Bookmark   Am I overlooking something? If Beta measures only systematic risk (therefore assuming that all firm-specific risk can be diversified away), then why is the CAPM model used to estimate cost of equity? Isn't it a little misleading ...

    12 comments - 0 silver bananas - May 30 2015 - 12:23pm -

  2. Notes for Technical Interview Questions

    Quote During a recent round of interviews with several banks, headhunters sent across a number of potential technical questions that they said I should be very comfortable with. However, through all of my interviews I was never actually asked any technica ...

    40 comments - 29 silver bananas - Jul 11 2015 - 3:54am -

  3. What Is The Capital Asset Pricing Model (CAPM)?

    The Capital Asset Pricing Model, or CAPM, is one of the most commonly used models for calculating the expected return on an asset and is used to price securities. The CAPM requires 3 data inputs: Beta of the asset (how much it moves relative to the market ...

    0 comments - silver bananas - Sep 2 2012 - 5:15am -

  4. What is the accurate market risk premium to use currently? (for the CAPM formula for example)

    Quote 10 year treasury is at 2.25%. What is the market premium that you are using? CAPM ...

    5 comments - 0 silver bananas - Mar 8 2015 - 12:18pm -

  5. Breaking Into RE- CCIM/Argus/etc

    So, long time lurker here. Short story, I'm 8 months or so out from leaving the military(August) and entering my last semester of B-school(IU Kelley Direct). Obviously not a target school, but still decent, and with ugrad in History from a midsize no ...

    5 comments - 0 silver bananas - Nov 13 2014 - 1:19pm -

  6. CAPM- Cost of Debt

    Hello, I am currently in the middle of completing my Masters in corporate finance, and have come to a slight "roadblock" in terms of my Company valuation. In terms of background context, I am currently valuing a company on its 2004 IPO listing d ...

    15 comments - 0 silver bananas - May 4 2014 - 5:19pm -

  7. WACC calculation

      Quote   Bookmark   We are recently discussing a new discount rate methodology and would like to ask you for an advice. Part of our discount rate methodology discussion is concerned with size premium, namely how to "convert" the U.S. capital ma ...

    1 comment - 0 silver bananas - Jun 4 2015 - 12:40pm -

  8. What kind of WACC do you usually get?

    Hi everyone. I am doing stock valuations for my own investment portfolio, but what is bothering me is the WACC calculation. I red Graham's book and a book with Buffets's "essays". They both suggest that beta is not a reliable indicator ...

    5 comments - 0 silver bananas - Jan 26 2014 - 12:54pm -

  9. Finance Hipsters

    Quote Morning Monkeys! I'd like to take a moment to discuss the growing multitude of "finance hipsters" and why they annoy the crap out of me. No, I'm not talking about hipsters who happen to work in finance, I'm talking about all ...

    29 comments - 1 silver bananas - Nov 18 2012 - 6:38am -

  10. DCF- Beta & Expected Return

    Doing a DCF of a mature retail company and have a couple of questions if you guys could help me out. They involve inputs to the CAPM in computing WACC... The company's beta is not publicly available via free, public sources and I was curious if it wo ...

    2 comments - 0 silver bananas - Jun 19 2014 - 10:10pm -

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