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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: Moominoid who wrote (15241)2/20/2002 9:34:44 AM
From: LLCF  Read Replies (2) | Respond to of 74559
 
<According to the usual versions of the CAPM model the risk free rate is the 90 day treasury bill rate. You add beta*equity premium to that to get the discount rate for stocks. >

Well, that depends who you are... we never used it. And anyone who does to value equity...... sadly... is rather stupid.

DAK



To: Moominoid who wrote (15241)2/20/2002 10:57:46 AM
From: Wyätt Gwyön  Read Replies (1) | Respond to of 74559
 
i like figuring with 3.5% TIPS rate as risk free rate. greenspan has intentionally dropped the 90day T to 0% real in his attempt to sustain the bubble, but the TIPS do not lie.