Talk:Cost of equity

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 Definition:  The minimum rate of return a firm must offer shareholders to compensate for waiting for their returns, and for bearing some risk. [d] [e]
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The paragraph (s)

" Asset Pricing Model

Practitioners usually use some asset pricing models to estimate the cost of capital of an investment. It appears from a survey by Bruner et al. (1998) that the Capital Asset Pricing Model (CAPM) proposed by Sharpe (1964) and Lintner (1965).

It proposed that the expected stock return (or equivalently the cost of equity capital) is equal to: "


is/are awkwardly worded. What is the desired point here?


Correction done Anh Nguyen 07:29, 7 May 2007 (CDT)

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