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How do you calculate the market risk premium?

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There is a calculator on the Internet at the site referenced below.
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What is the current market risk premium of Australia?

The current estimated market risk premium of Australia is 8  percent. This is within the regulatory period January 2010 to June  2014.

How are premiums on life policies calculated?

  Understanding how life insurance premiums are calculated can be quite complicated. In essence, your life insurance rates are based on a number of factors such as your ag

What is forward premium How does the forward market help in reducing currency risk in international business?

Answer   The forward premium arises due to interest differentials between two currencies. In order that the two currencies have the same intrinsic values as they have tod

If the market risk premium were to increase everything else beign equal the value of common stock would do what?

Value of the common stock will go down. As market becomes riskier market participants adjust expected risk premium and start to demand higher returns, consequently they begin

What is default risk premium?

The amount of interest, that you add to a bond or other instrument, to compensate for the risk that the person or company cannot or will not pay you back. You evaluate the ris

If stock beta is 1.2 the risk free rate is 4 and market rate of return is 14 what is the market risk premium?

  I'm going to assume that you mean the risk free rate is 4%, or 0.04, and the market rate of return is 14%, or .14. If that is the case, then we solve: Market Rate of R

How do you calculate market risk premium for a firm?

Risk premium = Company's risk (standard deviation of the historical stock returns of the market as a whole) - Risk-free rate of return (standard deviation of the historical tr
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Why increase in risk premiums?

By McDonald Kang'e Insurance premiums increase because of the following reasons Consumer Price Index (CPI)- to cater for inflation Fraud and Malpractice- These drive the

The market risk premium is measured by?

The market risk premium is measured by the market return less  risk-free rate. You can calculate the market risk premium as market  risk premium is equal to the expected ret