The consumer staples sector is composed of companies whose primary lines of business are food, beverages, tobacco and other household items. Examples of these companies, include Procter & Gamble (NYSE:PG), Colgate Palmolive (NYSE:CL) and Gillette. These types of companies have historically been characterized as noncyclical in nature as compared to their close relative, the … [Read more...]
Equity Risk Premium : The Overview
A risk premium is the minimum difference a person requires to be willing to take an uncertain bet, between the expected value of the bet and the certain value that he is indifferent to.The equity risk premium is commonly viwed as the extra retun needed to induce investors to risk their money in the stock market rather than opting for the safe haven of government bonds.It is a … [Read more...]