3.6Investment Foundations · Mission 4
Build an Equity Risk Policy
Turn risk definitions, model evidence, cash-flow judgment, and a price buffer into a decision the scholarship committee can audit.
Your mission
Calculate the source-verified 8% implied return and $44 purchase threshold, then save a complete Equity Risk Policy.
24–28 minutesFive guided missionsFinal Equity Risk Policy
Guided equity-risk lab
0 of 5 missions complete
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OPS Guide
A market-implied required return is backed out of price and cash-flow assumptions. State every assumption before treating the result as evidence.
Inspect all three model inputs, then calculate the implied return.
Mission 1 of 5 · Imply
Infer a required return from price
Direct definition
A market-implied required return is the discount rate that makes a valuation model’s expected cash flows and growth consistent with the current price.
Reconstruct the source’s constant-growth dividend example. Inspect each assumption before calculating; 8% is model-implied, not promised.
$1 ÷ $20 + 3% growth
?
Current price
$20
The market price paid today in the source example.
Inspect all three model inputs, then calculate the implied return.
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