 Real-world EEV usually uses a risk discount rate made up of the risk-free rate plus a risk margin which reflects the weighted average cost of capital and Beta from the CAPM model.Using company-level economic models clearly reflects a top-down approach to determining the risk discount rate.Market-consistent EEV makes use of a bottom-up approach for determining the risk discount rate, which produces a number which equals the risk free rate plus an explicit allowance for operational risk and market risk.