Desrs
Security Risk premium is beta (Rm-Rf)
in case beta more or less than 1
Market risk premium is also beta(Rm-Rf) only if beta is 1
in case beta is 1 Required rate of return (R) equals Marker rate of return (Rm)
Just look at this formula
R= Rf + beta(Rm - Rf )
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Mohamed Aly
Chief Financial Officer
Jeddah
Saudi Arabia
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Original Message:
Sent: 04-18-2021 06:41 PM
From: Walid Tammam
Subject: cma part 2 marketable securities
what's different between risk premium and market risk premium
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Walid Tammam
Accountant
Adammam
Saudi Arabia
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