Capital Market Expectations
Seven Steps For Forming Capital Market Expectations 1. Determine capital market expectations needed based on tax status , horizon and type of assets . 2. Asset’s historical data 3. Valuation methods used and it’s input requirements 4. Collect best possible data 5. Experience and judgement to evaluate current market conditions 6. Formulate CME 7.Monitor Performance and refine Frameworks For Capital Market Expectations Statistical Tools 2. Discounted Cash Flow Model 3. Risk Premium Approach 4. Financial Equilibrium Model Business Cycle –…