Equity risk: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Administrator (CSV import) |
imported>Doug Williamson (Mend link.) |
||
| (5 intermediate revisions by the same user not shown) | |||
| Line 1: | Line 1: | ||
1. | |||
The variability of returns to equity investors, often measured by the standard deviation of equity returns. | The variability of returns to equity investors, often measured by the standard deviation of equity returns. | ||
In the Capital asset pricing model, total equity risk is driven both by the underlying business risk and | In the Capital asset pricing model, total equity risk is driven both by: | ||
:(i) the underlying business risk and | |||
:(ii) the additional financial risk resulting from the level of debt in the firm’s financial structure. | |||
2. | |||
The risk of losses on direct equity investments (shareholdings) or on other equity-linked positions. | |||
== See also == | == See also == | ||
| Line 7: | Line 17: | ||
* [[Business risk]] | * [[Business risk]] | ||
* [[Capital asset pricing model]] | * [[Capital asset pricing model]] | ||
* [[Equity]] | |||
* [[Equity beta]] | * [[Equity beta]] | ||
* [[General equity risk]] | |||
* [[Financial risk]] | * [[Financial risk]] | ||
* [[Market Risk in the Banking Book]] (MRBB) | |||
* [[Specific equity risk]] | |||
[[Category:Manage_risks]] | |||
Latest revision as of 08:42, 24 June 2022
1.
The variability of returns to equity investors, often measured by the standard deviation of equity returns.
In the Capital asset pricing model, total equity risk is driven both by:
- (i) the underlying business risk and
- (ii) the additional financial risk resulting from the level of debt in the firm’s financial structure.
2.
The risk of losses on direct equity investments (shareholdings) or on other equity-linked positions.
