|
- UID
- 223407
- 帖子
- 318
- 主题
- 8
- 注册时间
- 2011-7-11
- 最后登录
- 2014-8-2
|
was coming back to this today, just want to make sure i got it...
R = a +B(Rm) + e
B(Rm) would be beta x the expected return on the market...this is NOT an equity risk premium (i.e. we don't subtract the RF rate as we do in the CAPM).
a = the component of the security's return that is driven by firm-specific risk.
E is just an error term...
is that about right? |
|
发表于 2011-7-13 13:03
|