In respect to the Morgan Stanley 2003 report on eBay, eBays annualized geometric return between May 2003
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In respect to the Morgan Stanley 2003 report on eBay, eBay’s annualized geometric return between May 2003 and December 2014 was 7.9 percent, its annualized arithmetic return was 14.2 percent, and its annualized arithmetic risk premium was 12.7 percent. In light of this information, how would you judge the Morgan Stanley team’s assumption of a 12 percent discount rate?
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Operationally CAPM is model for shortterm returns usually monthly retu...View the full answer
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Behavioral Corporate Finance Concepts And Cases For Teaching Behavioral Finance
ISBN: 9781259277207
2nd Edition
Authors: Hersh Shefrin
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