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Results for “Beta”

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Fundamental Analysis & Valuation

Capital Asset Pricing Model

A model that estimates the return required on an asset as the risk-free rate plus a premium proportional to its market risk.

Expected Return = Risk-Free Rate + Beta x (Expected Market Return - Risk-Free Rate) % Fundamental Analysis & Valuation

Cost of Equity

The return shareholders require for bearing the risk of owning a company's shares.

Cost of Equity = Risk-Free Rate + Beta x Equity Risk Premium %