When assessing equity returns, the investor must be a price taker on what equities collectively will return; the market prices as a whole set the expected return, and individual investors cannot simply demand 15% if the market offers 8.4%.

causalpending

Speaker

Aswath Damodaran

Evidence Quote

When you enter financial markets, you're essentially a price taker when it comes to what you can earn on stocks.

Source

Aswath Damodaran: I Am More Cautious Than EverThe Master Investor Podcast with Wilfred Frost
Created: 8/12/2026, 6:41:25 PM

My Notes

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