Session 6: Risk, Riskfree Rates and Equity Risk Premiums (a start)

Podcast: Aswath Damodaran · Aswath Damodaran

Opublikowano: 2026-10-21

We started this class by tying up the last loose ends with risk and return models, talking about how assuming that there are no transactions costs and private information can lead us all to hold the market portfolio, and how risk can be then measured as risk added to that portfolio. We did damn the CAPM with faint praise, arguing that it does not do very well at explaining differences in returns across companies, but that it does at least as well as the alternatives. We then started on the mechanics of the model, taking about risk free rates...