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Unformatted text preview: RRR = Rf + Risk Premium CAPM = Rf + Beta(Rm-Rf) Draw SML Diversifiable, unsystematic, firm specific, idiosyncratic risk Can be mitigated via diversification. Draw diversification graph Build up Method (Typically for smaller firms and under diversified investors). RRR = bond yield + equity risk premium + micro-cap risk premium + start-up risk premium...
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This note was uploaded on 04/07/2011 for the course BUS M 301 taught by Professor Jimbrau during the Winter '11 term at BYU.
- Winter '11