The two main formulas for determining the cost of equity are the capital asset pricing model (CAPM) and dividend discount model (DDM). Each formula serves a different purpose, with CAPM being the ...

Investopedia / Michela Buttignol The Treynor ratio was developed by Jack Treynor, an American economist who was one of the inventors of the Capital Asset Pricing Model (CAPM). In essence ...

The most common method used to calculate cost of equity is the capital asset pricing model or CAPM ... "Unlevered Cost of Capital: Definition, Formula, and Calculation." ...

Black, Fischer, Michael C. Jensen, and Myron Scholes. "The Capital Asset Pricing Model: Some Empirical Tests." In Studies in the Theory of Capital Markets, edited by ...

Equity investing utilizes the Capital Asset Pricing Model (CAPM) to find the RRR ... investors can rearrange the formula into: Investment decisions are found in corporate finance.