Abstract
This note is a summary of a COTOR-VALCON discussion on the relationship between an insurer’s risk and cost of capital. The focus is two fold: on the applicability of the capital asset pricing model (CAPM), and on the effects of financial frictions.
Series
Working Paper
Editor
Casualty Actuarial Society
Year
2009
Keywords
CAPM; Cost of capital; financial frictions; shareholder value; financial economics
Categories
CAPM/Asset Pricing
