Specific company risk factor

Business Valuation UpdateVol. 8 No. 3
March 2002
fair market value (FMV), investment value, systematic risk, equity risk premium (ERP), unsystematic risk


In Dr. Pratts book, there is (page 76) "The Specific Risk Factor" and the "Expanded CAPM Cost of Capital Formula." This is a very basic question: The use of the expanded model, which include ...