Estimating the cost of equity

Description

This free course, Estimating the risk and return of a share, examines how investors determine the return they expect from investing in shares (also known as equities). The course looks at how the ‘risk-free’ rate of return is determined and at how investors calculate the equity risk premium (ERP) for shares. Collectively these two factors determine the return expected from investing in the equity market. The course also shows how the Dividend Valuation Model (DVM) can be used as an alternative for deriving the expected return on shares. The course therefore provides a basis for understanding how shares are priced.

Course format

In this free course we examine the factors that determine the return sought by investors when buying shares. This expected return takes into account the perceived risks of investing in different shares.

Section 1 of this course should be used in conjunction with the activities provided in Sections 2 to 5. The latter will help you develop and test your understanding of the concepts and issues covered.

 Institution

The Open University

 Instructor

 

  Information

Language English
Self-paced Yes
Hours of study 9 hours
EQF-Level EQF level 3
Rights Open license: (re-)use it
Requirements Free admittance
Cost Free of charge
Delivery mode Learn anywhere online
QA Quality assured
Massive Massive
Full Course Experience Full course experience
Provider OpenupEd
18-Mar-2016
Estimating the cost of equity
http://www.open.edu/openlearn/money-management/estimating-the-cost-equity/content-section-0
This free course, Estimating the risk and return of a share, examines how investors determine the return they expect from investing in shares (also known as equities). The course looks at how the ‘risk-free’ rate of return is determined and at how investors calculate the equity risk premium (ERP) for shares. Collectively these two factors determine the return expected from investing in the equity market. The course also shows how the Dividend Valuation Model (DVM) can be used as an alternative for deriving the expected return on shares. The course therefore provides a basis for understanding how shares are priced.
English
Self-paced
No
0
9
The Open University
http://www.open.edu/openlearn/free-courses
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In this free course we examine the factors that determine the return sought by investors when buying shares. This expected return takes into account the perceived risks of investing in different shares.

Section 1 of this course should be used in conjunction with the activities provided in Sections 2 to 5. The latter will help you develop and test your understanding of the concepts and issues covered.
For more information about the EFQ levels click here
EQF level 3
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image
image
No
Massive
Full Course Experience

Further information

In order to show thecertifications stated below you have to send us a manual request. Please contact for more information.

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The Open University
2023-03-24 16:27:28

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