Musings on Markets

FEBRUARY 8, 2025

A key tool in both endeavors is a hurdle rate a rate of return that you determine as your required return for business and investment decisions. It deepens the acquaintance because you encounter hurdle rates in almost every aspect of finance, and it ruins it, by making these hurdle rates all about equations and models.

Hurdle Rate 74

Hurdle Rate Valuation Corporate Finance Currencies 74

Musings on Markets

JANUARY 10, 2025

Noise in predictions : One reason that the expert class is increasingly mistrusted is because of the unwillingness on the part of many in this class to admit to uncertainty in their forecasts for the future. Hiding behind their academic or professional credentials, they ask people to trust them to be right, but that trust has eroded.

Corporate Finance 119

Corporate Finance Valuation Numbers Finance 119

Musings on Markets

AUGUST 15, 2023

With this investment, you face price risk , since even though you know what you will receive as a coupon or cash flow in future periods, since the present value of these cash flows, will change as rates change. and how much to hold in investments with guaranteed returns over their time horizon (cash, treasury bill and treasury bonds).

Investments 98

Investments Currencies Treasury Hurdle Rate 98

Musings on Markets

JANUARY 20, 2021

Put simply they look at a long time period in the past (50 years or even 100 years) and look at the premium that stocks earned over a risk free investment (treasury bills or bonds); that historical risk premium then gets used as a measure of the current equity risk premium. Data Update 4 for 2021: The Hurdle Rate Question.

Treasury 52

Treasury Investments Marketing Valuation 52

Musings on Markets

JANUARY 9, 2021

The conventional approach to measuring this premium is looking at past returns on stocks and treasuries (or something close to riskfree) and measuring the difference in historical returns and I report the updated levels (through 2020) for historical premiums for stocks over treasuries in this dataset.

Valuation 52

Valuation Currencies Numbers Corporate Finance 52

Barry Ritholtz

NOVEMBER 25, 2024

So I sell my stocks to make room for gold and it doesn’t, turns out my forecast is wrong. So you’ve got, you’ve got a modeling hurdle rate that you need to figure out when you’re adding diversifiers. 01:14:39 Global stocks plus a ladder of US treasuries. The second is behavioral.

Leverage 59

Leverage Investments Marketing Math 59

Barry Ritholtz

DECEMBER 26, 2023

So, so here’s, here’s the why I, I’m looking at it near term, not, not making any sort of forecast or anything like that, but last year where we stood market was very nervous, s and p around the 200 week moving average finally started bottoming out. You, you mentioned the fed raising rates.

Marketing 64

Marketing Leadership Finance Investments 64