IDEAS home Printed from https://ideas.repec.org/a/wsz/fiq000/v15y2019i2id601.html

The Cost Of Equity Capital In Stock Portfolios Listed On The Warsaw Stock Exchange Using The Classic Capm

Author

Listed:
  • STANISŁAW URBAŃSKI

    (AGH University of Science and Technology)

Abstract

This work is an attempt to estimate the cost of equity capital characteristic among portfolios of companies listed on the Warsaw Stock Exchange in the years 1995-2017. To this end, the classic CAPM is used to estimate the cost of risk. Model tests are based on 252 monthly returns. In order to assess the errors of cost of capital estimation, the bootstrap method is used. The estimated cost of capital refers to the project portfolio with real options on these projects. Stock returns are generated not only by the companies implementing projects but also through real options modifying these projects. The estimated cost of capital can be a valuable indicator for portfolio managers. Also, it can be an approximate indicator for making decisions on the implementation of new investment projects. The estimated cost of capital assumes the highest values for value portfolios. The estimated cost of capital assumes the small values for growth portfolios.

Suggested Citation

Handle: RePEc:wsz:fiq000:v:15:y:2019:i:2:id:601
DOI: 10.2478/fiqf-2019-0011
as

Download full text from publisher

File URL: https://journals.wsiz.edu.pl/fiq/article/view/601
File Function: Abstract page
Download Restriction: no
File URL: https://journals.wsiz.edu.pl/fiq/article/download/601/563
File Function: Full text
Download Restriction: no
File URL: https://libkey.io/10.2478/fiqf-2019-0011?utm_source=ideas
LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
---><---

More about this item

Keywords

;
;
;

Statistics

Access and download statistics

Corrections

All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsz:fiq000:v:15:y:2019:i:2:id:601. See general information about how to correct material in RePEc.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

We have no bibliographic references for this item. You can help adding them by using this form .

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiesław Stręciwilk (email available below). General contact details of provider: https://journals.wsiz.edu.pl/fiq .

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.