Equity risk premium v/s Market risk premium

Discussion in 'CT2' started by sahildh, Apr 27, 2016.

  1. sahildh

    sahildh Member

    In the CAPM formula the value multiplied by beta has been given addressed by many names in the paper. I am very confused and if someone could just help me out by recognizing what means what, especially equity / market risk premiums .
     
  2. Patrova01

    Patrova01 Active Member

    equity risk premium and market risk premium mean the same thing and the names can be used interchangeably. it refers to the (rm-rf), difference between the market return and risk free rate of return. Hope that helps
     
    Vivek Rana likes this.
  3. sahildh

    sahildh Member

    OK. Thanks Patrova01.
     

Share This Page