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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 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 risk free rate is 10 percent and the market risk premium is 5 percent market determined beta is 1.8 what is the required rate of return?

  RoR = Rf + beta x Rp where, RoR = Required Rate of return Rf = Risk free Rate Rp = Risk Premium so Ror - 19%

# 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 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

# 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 the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 what is the beta coefficient?

  the beta is 1   the beta is 1

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

4.25 + 1.4(5.5) = 11.95 = required rate of return   the correct answer is:   4.25 + 1.4 (5.50-4.25) = 21.75

# 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

# What is Market Risk Premium?

It is the return you are expected to make by putting your money into Equity(stocks) Over what the current Risk free rate is. For example the Risk free rate (30 YR T-Bonds) is

# 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

# 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.

# 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

# If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 If the market risk premium increased to 6 percent what would happen to the stocks required rate of return?

If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 If the market risk premium increased to 6 percent what would happen to the stocks

# What is the current market risk premium?

Banks are currently using 8% market risk premium. Data as of Feb, 2013.

An Actuary.
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# What does it mean when one has market risk premium?

When one has market risk premium he/she is willing to take an financial risk. The risk premium is how much value stocks should return over a risk-free investment. Stocks are c
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