Hi all
I would like to hear everyones thoughts calculating the market risk premium (Rm-Rf) for use in the CAPM in calculating the cost of equity component of the WACC.
I am using the following:
Rm - average 1 year rolling returns over the last 10 years of the ASX all ords
Rf - average yield of 10yr au treasury bonds
Rm is extremely low given the huge drop in the index from the GFC. This gives me a negative market risk premium and is giving me a headache.
Any thoughts?
Hi allI would like to hear everyones thoughts calculating the...
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