A firm's Cost of Equity=Rf+Beta*Market Risk Premium. Treasury bill is low risk investment, does Rf decline during recession? Is this firm more sensitive to market change in recession(Beta)? How about Rmarket? I think Market Risk Premium should be lower because those companies in market portfolio should perform badly in recession therefore the return is lower too.
Can anyone help me with this question?
Thanks
| +173 | The "Not So Obvious" things that get you a return offer? | 20 | 13h | |
| +113 | Is my life over after not getting GS? | 27 | 3h | |
| +70 | Best IB group on the Street | 31 | 3h | |
| +58 | BIG FOUR ARE PARADISE | 15 | 13h | |
| +50 | Thoughts and tips on how to speak like an investment banker. | 25 | 15h | |
| +48 | Tell me one good reason why Jefferies isn’t going to be a top bank in the next 5 years | 23 | 7h | |
| +36 | UBS Outlook | 28 | 1d | |
| +35 | How to deal with egotistical team? | 6 | 3d | |
| +33 | Highest Paid Bankers in Toronto? | 51 | 13h | |
| +25 | Very ridiculous interview feedback | 13 | 19m |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Magnam iure quis esse inventore pariatur dolore sed. Totam necessitatibus nihil excepturi non et quam. Molestiae earum doloribus molestias et est qui. Voluptatem est consequatur autem. Tempore eum numquam quia quo quod et aperiam in.
Omnis qui totam laudantium commodi numquam quia id. Qui blanditiis iste error at tempora nemo. Nihil impedit quod sed qui hic. Et architecto esse quis aperiam illum non doloremque. Sed et cumque voluptatibus molestiae. Modi velit ducimus consectetur vitae fugit.
Voluptatem voluptatem laborum ullam officiis ut. Odit harum deserunt veritatis iusto est. Commodi laboriosam veritatis adipisci quia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...