Im trying to do a valuation for Cadbury as of 2009, what should I use as the market risk to find the capm?
Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga.
Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus.
Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
or market return?
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.