A certainty equivalent form of the CAPM is as follows: Why does the equation use the riskless

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A certainty equivalent form of the CAPM is as follows:

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Why does the equation use the riskless rate to discount the cash flows in the numerator?

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Investment Valuation And Asset Pricing Models And Methods

ISBN: 9783031167836

1st Edition

Authors: James W. Kolari, Seppo Pynnönen

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Question Posted: Mar 03, 2024 02:00 AM

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A certainty equivalent form of the CAPM is as follows: Why does the equation use the riskless

Question:

Po E (P) - [Cov(P, RM)/0 (RM)][E(RM) R] 1+ Rf

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Investment Valuation And Asset Pricing Models And Methods

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