#!/usr/bin/env python3
# -*- coding: utf-8 -*-
"""
Created on Sat May  4 15:06:58 2019

@author: alifahsanul
"""

"""
risk adjusted cost of equity = risk free rate in the currency of analysis + relative risk of company or equity in question * equity risk premium required for average risk equity

Capital Asset Pricing Model
CAPM E(R) = Rf + β (Rm - Rf)
Input: Riskfree rate, beta relative to market portfolio, market risk premium

Arbitrage Pricing Model
APM E(R) = Rf + Σβj (Rj - Rf)
Input: Riskfree rate, number of factors of betas relative to each factor, number of factors of risk premium

Multi factor E(R) = Rf + Σβj (Rj-Rf)
Input: Riskfree rate, macro factors, betas relative to macro factors, macroeconomic risk premiums

Proxy E(R) = a + ΣβjYj
Input: Regression coefficient

"""




























