Risk, the required rate of return, and aspects of South African management practice
| Autor: | J. K. Bosch, S. Paulo |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 1992 |
| Předmět: |
Rate of return
Actuarial science lcsh:Management. Industrial management Strategy and Management Risk premium Empirical survey Control (management) Inference lcsh:Business Variety (cybernetics) Order (exchange) lcsh:HD28-70 ddc:650 Value (economics) Business Business and International Management lcsh:HF5001-6182 |
| Zdroj: | South African Journal of Business Management, Vol 23, Iss 2, Pp 46-54 (1992) |
| ISSN: | 2078-5976 2078-5585 |
| Popis: | The pivotal role of the required rate of return to all financial decisions is well documented in the financial literature. However, many misconceptions exist with regard to the specification of the components of the required rate of return. In order to learn more about the possible components of the required rate of return, particularly the different risk premia, empirical information on the determination and use of the required rate of return by South African financial managers was obtained. From the findings of the empirical survey it was evident that the required rate of return is adjusted for a variety of risks. This enables the inference to be drawn that risk adjusted discount rates are being used when taking financial decisions. Further, it is evident that sensitivity analysis and judgemental approaches are used when adjustments are made to the required rate of return. |
| Databáze: | OpenAIRE |
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