quote:Originally posted by Halebop


In my opinion the risk free rate of return is far too low for any company. By its nature, equity investing is not risk free and requires higher long term returns.
Hold on, I'm confused, weren't you the guy that told me there is no relationship between risk and return. While I agree with your statements that people require higher long term return, the basis for them requiring this is surely that there is (or at very least they think there should be) a payback in return for greater risk. Maybe I've misunderstood your position?