RISK AND CORPORATE RATE OF RETURN
RAND CORP SANTA MONICA CA
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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.
- Administration and Management
- Economics and Cost Analysis
- Operations Research