@wikipedia
Potential interest Shareholders' expectation on the annual return rate on its equity in the shareholders equityBusiness:
| LaTeX Math Block |
|---|
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K_E = R_f + \beta \, R_pReturn/E |
where
| R_f | risk-free bond (like for example U.S. Treasury Bond) | annual cash return , whether as dividends or as capital growth |
|
R_p | risk premium , where is historical average return of the stock market | | sensitivity to the market risk for the security
The most popular model of estimating the
See also
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Business / Business Administration / Financial Management / Financial Accounting
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