The strategic management of corporate investments is becoming increasingly complex in today's corporate landscape. Professional investment management is now the key to sustainable value creation. At the same time, it forms the foundation for long-term corporate success. This article illuminates the essential dimensions of contemporary investment management - from strategic portfolio management through legal and operational aspects to the requirements of digital transformation and ESG criteria.

The market risk premium (MRP) is a central component of company valuation and plays a significant role in the capital asset pricing model (CAPM). It measures the additional return investors expect for assuming market risk compared to risk-free investments. One way to calculate the market risk premium is to employ the dividend discount model (DDM), also known as the Gordon growth model. This is one of the implicit methods for determining the MRP. Unlike historical methods, which evaluate past return data, the model estimates the market return by discounting future dividends.

Company share prices are subject to constant fluctuations on the financial markets. A decisive factor for the volatility of a share is the so-called beta factor. It indicates how strongly a company share reacts to general market developments. Understanding the beta factors is essential for an accurate business valuation. This is because it provides valuable information on the risk of an investment. In this article, we shed light on the relationship between the beta factors and the liquidity of a share. We explain how the two factors influence each other and what practical implications this has in practice.