Equity risk: Difference between revisions
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In the Capital asset pricing model, total equity risk is driven both by the underlying business risk and by the additional financial risk resulting from the level of debt in the firm’s financial structure. | In the Capital asset pricing model, total equity risk is driven both by the underlying business risk and by the additional financial risk resulting from the level of debt in the firm’s financial structure. | ||
== See also == | == See also == | ||
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* [[Equity beta]] | * [[Equity beta]] | ||
* [[Financial risk]] | * [[Financial risk]] | ||
[[Category:Manage_risks]] | |||
Revision as of 09:07, 3 June 2015
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 by the additional financial risk resulting from the level of debt in the firm’s financial structure.
