Retail Portfolio Construction
Individual investors evaluate expected returns on candidate stocks to determine which ones to buy for their personal investment portfolio.
Corporate Cost of Capital
Corporate finance teams calculate the cost of equity for evaluating capital budgets and investment projects within their company.
Pension Fund Allocation
Pension fund managers assess expected returns on equity holdings to optimize asset allocation for retirement fund portfolios.
Equity Valuation Analysis
Financial analysts and equity researchers use expected returns to value stocks and determine if they are fairly priced relative to risk.