Equality and Human Rights Commission and Equity beta: Difference between pages
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imported>Doug Williamson (Mend link.) |
imported>Doug Williamson (Expand explanation of total equity risk.) |
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In the Capital asset pricing model (CAPM), the equity beta is the relevant measure of total equity risk. | |||
This total risk results from both: | |||
:(i) the underlying business risk and | |||
:(ii) the additional financial risk resulting from the level of debt in the firm’s financial structure (financial gearing). | |||
The | The equity beta is also known as Geared beta or Levered beta. | ||
== See also == | == See also == | ||
* [[ | * [[Beta]] | ||
* [[ | * [[Capital asset pricing model]] | ||
* [[ | * [[Equity]] | ||
* [[ | * [[Equity risk]] | ||
* [[ | * [[Gearing]] | ||
* [[ | * [[Ungeared beta]] | ||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
[[Category:Corporate_finance]] | |||
[[Category:Identify_and_assess_risks]] |
Revision as of 15:19, 9 February 2019
In the Capital asset pricing model (CAPM), the equity beta is the relevant measure of total equity risk.
This total risk results from both:
- (i) the underlying business risk and
- (ii) the additional financial risk resulting from the level of debt in the firm’s financial structure (financial gearing).
The equity beta is also known as Geared beta or Levered beta.