1. Cost Of Capital At Ameritrade
... . Proxy for the risk premium: stock market return - US government bond returns Estimating the market risk premium Historical data: should we use a long or short time series? Data should reflect overall economy throughout period of analysis Large stocks or small stocks? Large stock portfolio is better estimate of market portfolio Estimating the market risk premium Sensible choice? Use historical average annual ... Schwab, E*Trade, Quick & Reilly, Waterhouse Investor Srvcs) Comparable Firms Discount brokers derive most of their revenue from brokerage commissions and net interest revenues S...
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