The key to the dominance of low volatility equities is that high volatility stocks are bad investments on the two main dimensions of stockworthiness: volatility and return. Volatile stocks by definition have high volatility, and also high correlation with the overall market (CAPM beta) and the bu...
A dozen consistent CAPM-related valuation models – so why use the incorrect one - Ekern - 2006 () Citation Context ...st-based, i.e. it is given by the d-NPV (B). As a result, not only “most textbooks in finance do not warn against a common pitfall in discounting expected ...