FINANCE

Risk and Return

Risk and Return

Introduction

This paper looks at three of the best accepted models for estimating the rate of return from equity, and critically analyses these models on different parameters, to recommend one that could be use for the purpose of estimation by the company. In this paper, we give an overview of models that can be used for estimating the rate of return.

Arbitrage Pricing Theory

This theory assumes that the return on investment is influenced by many factors. For the identification, of these factors can be used three approaches, the basic model, the macroeconomic model and the statistical ...