Once specific risk premiums are quantified, they are added to a risk-free rate of return to arrive at the cost of equity. This process is called the "build-up approach." In this post, I expand on the technical aspects of the development of the small stock risk premium.
July 01, 2013 at 12:00 AM
1 minute read
Once specific risk premiums are quantified, they are added to a risk-free rate of return to arrive at the cost of equity. This process is called the "build-up approach." In this post, I expand on the technical aspects of the development of the small stock risk premium.
To read more, continue to the blog.
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