A community for students. Sign up today!
Here's the question you clicked on:
 0 viewing
 3 years ago
Im trying to do a valuation for Cadbury as of 2009, what should I use as the market risk to find the capm?
 3 years ago
Im trying to do a valuation for Cadbury as of 2009, what should I use as the market risk to find the capm?

This Question is Closed

chowdary.kartheek
 3 years ago
Best ResponseYou've already chosen the best response.0Are 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

adelgalal
 3 years ago
Best ResponseYou've already chosen the best response.0you 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.
Ask your own question
Ask a QuestionFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.