RISK AND CORPORATE RATE OF RETURN

Abstract

Although economists have great interest in the correlation between risk and profits, few studies have attempted to quantify the relationship. Consequently, this paper considers the concept of risk differentials in corporate profit and proposes a model for measuring them. Using this model, the risk-rate of return relationship was estimated for a sample of firms in various industry groups. For each industry group, average risk-adjusted rates of return were also obtained.

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Document Details

Document Type
Technical Report
Publication Date
Nov 01, 1967
Accession Number
AD0661554

Entities

People

  • George R. Hall
  • Irving N. Fisher

Organizations

  • RAND Corporation

Tags

Communities of Interest

  • Ground and Sea Platforms
  • Human Systems
  • Space

DTIC Thesaurus Topics

  • Accounting
  • Coefficients
  • Corporations
  • Dispersions
  • Economic Models
  • Equations
  • Investments
  • Money
  • Probability
  • Probability Distributions
  • Random Variables
  • Risk Factors
  • Skewness
  • Standards
  • Trade Associations
  • Uncertainty

Readers

  • Economics
  • Regression Analysis.