Equity risk: Difference between revisions
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imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Expand.) |
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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 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 (i) the underlying business risk and (ii) by the additional financial risk resulting from the level of debt in the firm’s financial structure. | ||
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The risk of losses on direct equity investments (shareholdings) or on other equity-linked positions. | |||
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* [[Business risk]] | * [[Business risk]] | ||
* [[Capital asset pricing model]] | * [[Capital asset pricing model]] | ||
* [[Equity]] | |||
* [[Equity beta]] | * [[Equity beta]] | ||
* [[General equity risk]] | |||
* [[Financial risk]] | * [[Financial risk]] | ||
* [[MRBB]] | * [[MRBB]] | ||
* [[Specific equity risk]] | |||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
Revision as of 22:04, 29 October 2016
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) by 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.
