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Session 6: Company Exposure to Country Risk + Implied Equity Risk Premiums

Session 6: Company Exposure to Country Risk + Implied Equity Risk Premiums

Published 4 months ago
Description

In today’s class, we started by looking how to measure a company's equity risk premium, arguing that it should be based on where the company operates, rather than where it is incorporated. We then moved not to implied equity risk premiums, why they move over time and how they are related to the prices of risk in other risky asset classes (bond and real estate).
Start of the class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/ImplPremNew.pdf
Slides: https://nyu.box.com/s/aro2ikxtmr3u479ro1dc80t1hx772qt2
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session6Atest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session6
Asoln.pdf

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