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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.

An Actuary.

# 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 would happen to the risk premiums on corporate bonds if brokerage commissions were lowered in the corporate bond market?

Lower brokerage commissions for corporate bonds would make them more liquid and thus increase their demand, which would lower their risk premium. hope this helps people on t

# 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

# How are insurance premiums calculated?

annual base prenium mulply by the rating factor

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# 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

# How is the marine insurance premium calculated?

Insurance value x Exchange Rate(USD)xexcess value(0.7/1000)+sales tax(10.3%)=Premium

# Risk free rate is 5 and the market risk premium is 6 What is the expected return for the overall stock market What is the required rate of return on a stock that has a beta of 1.2?

  Expected return= risk free rate + Risk premium   = 11   rate of return on stock= Riskfree rate + beta x( expected market return- risk free rate)

# If beta coefficient is 1.4 and the risk free rate is 4.25 and the market risk premium is 5.50 what is the required rate of return?

  Require Rate of Return is formulated as: Riskfree Rate + Beta(Risk Premium)   Required Rate of Return = 4.25 + 1.4 (5.50) = 11.95%

# If beta is 1.8 risk free rate is 5 and expected market risk premium is 12 what is the cost of equity?

    5.216 according to CAPM
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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