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gre88
Im trying to do a valuation for Cadbury as of 2009, what should I use as the market risk to find the capm?
Are u asking market risk premium or expected market return. If it is expected market return then calculate geometric average return of stock market for 10 years. If u want to calculate market risk premium, I guess this is the answer, then calculate same market expected return. Afterwards take a government bond return rate if the expected market return is 10 years then go for ten years bond. If the expected market return is for 5 years then go for 5 years bond. I hope this is the answer what u need. If u need any thing else in finance mail me bye
you can search damodran web site he have already calculated the Market Premuim for different year..here is an attachment updated 2011...if you want the value as of 2009 you have to use MRP as of that date.