Estimating risk-adjusted interest rates for dairy farms.

摘要

The Capital Asset Pricing Model is used to estimate the cost of equity for each of 62 New York dairy farms in the USA that participated in a business analysis programme from 1988-97. The estimated betas were statistically less than one for all farms. Risk-adjusted interest rates ranged from a high of 9.46% to a low of -0.72%, reflecting these low estimated betas.