Examlex
Jan Alvarez works for a cable TV company in a large city. She makes telephone calls during the early evening and tries to sell cable services to nonsubscribers. Jan is
Risk Premium
The additional return an investor requires to invest in an asset over a risk-free rate, compensating for the risk of the investment.
Yield
The income return on an investment, such as the interest or dividends received, often expressed as an annual percentage based on the investment’s cost, current market value, or face value.
CAPM Approach
The Capital Asset Pricing Model, a formula used to determine the expected return on investment (ROI) by correlating the risk and expected return.
Cost of Equity
The return that shareholders require or expect to earn on their investment in the company, considered as the company's cost of retaining and using equity capital.
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