Data Update 4: Risk = Danger + Opportunity

In this session, I start with the Chinese symbol for crisis, which is the combination of the symbols for danger and opportunity to define risk. I argue that while you face many risks, when investing in companies, and breaking those risks down into categories can help make sense of them. I then convert these qualitative risk measures to hurdle rates (for companies) and required returns (for investors) and argue that investors and companies who demand double digit returns in this market are likely to get shut out.
Slides: https://www.stern.nyu.edu/~adamodar/p...
Blog Post: https://aswathdamodaran.blogspot.com/...
Data:
1. Equity Risk Premiums, by country (for 2022): https://www.stern.nyu.edu/~adamodar/p...
2. Betas by Sector:
US: https://www.stern.nyu.edu/~adamodar/p...
Global: https://www.stern.nyu.edu/~adamodar/p...
3. Costs of capital by Sector:
US: https://www.stern.nyu.edu/~adamodar/p...
Global: https://www.stern.nyu.edu/~adamodar/p...