What is the mathematical relationship between the probability of a return and a discount rate/risk premium? (@isomorphisms @interfluidity?)
-
-
Replying to @doriantaylor1 reply 0 retweets 0 likes
-
Replying to @vgr
@vgr@isomorphisms@interfluidity isn't NPV what you get when you apply a discount rate (WACC + RP)? I be learnin'.4 replies 0 retweets 0 likes -
Replying to @doriantaylor
@doriantaylor@isomorphisms@interfluidity WACC? I think discount and return rate are independent vars. NPV is how you put them together.3 replies 0 retweets 0 likes -
Replying to @vgr
@vgr@isomorphisms@interfluidity …what I'm asking is if you have P(investment successful), how do you turn that into a risk premium?8 replies 0 retweets 0 likes -
Replying to @doriantaylor
@doriantaylor@vgr@isomorphisms what do you mean by "probability of return"? an investment that returns X or 0 at some future time?2 replies 0 retweets 0 likes
@interfluidity @doriantaylor @isomorphisms Wouldn't risk just be the probability of failure or expected loss value under failure case?
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.