Are some stocks less sensitive to market/systematic factors (recession, depression, war, etc.) than others? Provide some examples. Is there a measure that may allow us to evaluate this? How would we use it?
The factors that are used to determine the market interest rate on the bond are:
1. The Risk Free Rate
2. The Default-risk Premium
3. The liquidity Premium
4. The market Risk premium
What are these items, and how do they interact to arrive at the quoted interest rate.