GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW) | ||||||
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03:31 Jan 2, 2003 |
German to English translations [PRO] Bus/Financial | |||||||
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| Selected response from: Roddy Stegemann United States Local time: 14:07 | ||||||
Grading comment
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Summary of answers provided | ||||
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4 +7 | interest-rate adjusted |
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interest-rate adjusted Explanation: As with most Capital Asset Pricing (CAP) Models the researcher is concerned with the relationship between risk and return of individual stocks and the stock market as a whole. As the return on assets is strongly affected by the interest paid on money borrowed to purchase them, the interest-rate adjusted return provides a more accurate estimate of the true value of an asset to its purchaser. In this regard the term "bereinigt" refers to the removal of the influence of interest rates on stock prices. Without being able to see the model it is the best that I have to offer. |
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Grading comment
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