Key Terms
Term
Definition
Why might a firm use a specific risk premium in addition to CAPM when estimating cost of equity?
To account for firm-specific risks such as dependence on key management or lack of track record.
What does CAPM stand for in finance?
Capital Asset Pricing Model
Related Flashcard Decks
| Term | Definition |
|---|---|
Why might a firm use a specific risk premium in addition to CAPM when estimating cost of equity? | To account for firm-specific risks such as dependence on key management or lack of track record. |
What does CAPM stand for in finance? | Capital Asset Pricing Model |

