Examlex
The price/earnings ratio is the ratio of the earnings per share of common stock to the market price of a share of the common stock.
Market Risk Premium
The additional return expected by an investor for holding a risky market portfolio instead of risk-free assets.
Risk-Free Rate
The hypothetical yield on a risk-free investment, often exemplified by state-issued bonds.
Cost Of Equity
The return that a company must offer investors to compensate for the risk of investing in its shares.
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