CMA Study Group

cma part 2 marketable securities

  • 1.  cma part 2 marketable securities

    Posted 27 days ago
    what's different between    risk premium  and market risk premium

    ------------------------------
    Walid Tammam
    Accountant
    Adammam
    Saudi Arabia
    ------------------------------


  • 2.  RE: cma part 2 marketable securities

    Posted 27 days ago
    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 )

    ------------------------------
    Mohamed Aly
    Chief Financial Officer
    Jeddah
    Saudi Arabia
    ------------------------------