How to Calculate Market Risk Premium?
Market Risk Premium calculator uses Market Risk Premium = Expected Equity Market Rate-Risk Free Rate to calculate the Market Risk Premium, Market Risk Premium describes the relationship between returns from an asset portfolio and treasury bond yields. Market Risk Premium is denoted by MRP symbol.
How to calculate Market Risk Premium using this online calculator? To use this online calculator for Market Risk Premium, enter Expected Equity Market Rate (EEMR) & Risk Free Rate (R_{f}) and hit the calculate button. Here is how the Market Risk Premium calculation can be explained with given input values -> 17.2 = 19-0.3.