What is the market risk premium in spain at the present, Financial Management

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What is the market risk premium in Spain at the present moment - the number which I have to use in the valuations?

It is not possible to talk of "the" market premium for Spain. A risk premium is the incremental return an investor demands from shares, above the return on risk-free bonds. There is a market risk premium of every investor, but it is not possible to talk about a market risk premium of the market. In order to be able to talk about a market risk premium of the market it would be essential that all investors had the similar one.

 


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