wacc_computation__cost_of_equity_capm

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

With no annotations, the description must cover behavioral traits. It only notes that inputs are decimals, but does not disclose output format, whether validation occurs, or any side effects. For a calculation tool, it lacks essential behavioral context.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Is the description appropriately sized, front-loaded, and free of redundancy?

The description is a single sentence, front-loaded with the namespace. It is concise and wastes no words, but omits necessary details like the formula or output; still, it is appropriately minimal for its purpose.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

Given 5 parameters, no output schema, and no annotations, the description should provide more context about the CAPM formula, return type, or prerequisites. It is insufficient to fully specify the tool's behavior.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema coverage is 0%, so the description must compensate by explaining parameters. It only states 'All inputs as decimals' without defining individual parameters like risk_free, beta, or erp. The names are standard but not elaborated, leaving the agent without sufficient guidance.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Does the description clearly state what the tool does and how it differs from similar tools?

The description 'CAPM cost of equity' clearly states the tool computes the cost of equity using the CAPM model. The namespace prefix [wacc-computation] groups it with related tools. Purpose is specific and distinct from siblings like unlever_beta or relever_beta.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Does the description explain when to use this tool, when not to, or what alternatives exist?

No guidance on when to use this tool versus alternatives. It does not explain that this is for estimating cost of equity via CAPM, nor does it differentiate from related tools such as wacc_computation__wacc or the beta adjustment tools.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.