In this session, we did an overview of how we think about and measure risk in finance, the characteristics of a good risk & return model and whether the ones that are in use measure up. In the second part of the session, we looked at how best to estimate risk free rates.
Aswath Damodaran: Risk And Return Models
Implied Equity Risk Premiums & First steps on relative risk measures
In this session, we looked at the mechanics and intuition behind implied equity risk premiums and how they have varied over time as a function of other macro variables. We took our first steps in assessing the relative risk in a company.
David Einhorn's Greenlight Capital returned -2.9% in the second quarter of 2021 compared to 8.5% for the S&P 500. According to a copy of the fund's letter, which ValueWalk has reviewed, longs contributed 5.2% in the quarter while short positions detracted 4.6%. Q2 2021 hedge fund letters, conferences and more Macro positions detracted 3.3% from Read More