Examlex
The damage model holds each of the following assumptions EXCEPT
ROE
Return on Equity indicates a company's return from shareholder investments by showcasing the profit made from each dollar invested by shareholders.
Required Return
The minimum expected return an investor demands for holding a particularly risky investment, influenced by the risk-free rate and the risk premium.
Beta
An assessment of the unpredictability or inherent risk found in a security or portfolio when juxtaposed with the general market.
Risk-Free Rate
The theoretical rate of return of an investment with zero risk, serving as a benchmark for measuring the risk of other investments.
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