tag:blogger.com,1999:blog-8152901575140311047.post2195114446519430675..comments2024-06-16T03:17:28.432-04:00Comments on Musings on Markets: January 2017 Data Update 4: Country Risk UpdateAswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8152901575140311047.post-16148837901599823622017-06-28T09:34:29.427-04:002017-06-28T09:34:29.427-04:00Dear Prof Damodaran,
When you calculate the Relat...Dear Prof Damodaran,<br /><br />When you calculate the Relative Equity Volatility, you divide the Annual Standard Deviation of the 'S&P Emerging BMI Index' by the Coefficient of Variation of the 'BAML Public Sector US Emerging Markets Corporate Plus Index Yield'.<br /><br />Why didn't you divide Std Deviation by Std Deviation OR divide Coef of Variation by Coef of Variation?<br /><br />Thank you very much for you attention.<br /><br />R.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-56432978545092808512017-01-30T09:27:54.703-05:002017-01-30T09:27:54.703-05:00Am I using your data correctly? I am estimating th...Am I using your data correctly? I am estimating the Cost of Equity of a firm in Paraguay from the perspective of a US investor looking to acquire that firm. Assuming a beta of 1.5 and a U.S. risk-free rate (normalized) of 4.0% (Duff & Phelps recommended guidance) and using your spreadsheet for the ERP (US = 5.69%) and CRP (Paraguay = 3.55%), I get 16.1%, as follows: <br /><br />ke, Paraguay = Rf, US + (Beta,US x ERP,US) + CRP<br />ke, Paraguay = 4.0% + (1.5 x 5.69) + 3.55%<br />ke, Paraguay = 16.1%<br /><br />Are the mechanics correct? Thanks!<br /><br />adzbvrhttps://www.blogger.com/profile/05490809969392238194noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-89952566885361657582017-01-27T01:58:41.426-05:002017-01-27T01:58:41.426-05:00Dear Professor Damodaran
As always, your posts ar...Dear Professor Damodaran<br /><br />As always, your posts are interesting and informative.<br /><br />Given the use of sovereign data, I am curious about your views on this 2015 paper that makes the case that there is still double counting of risks.<br /><br />https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2659257<br /><br />Regards,<br /><br />Marko<br />Markohttps://www.blogger.com/profile/15576160313428349258noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-21535574619143719242017-01-24T22:09:57.096-05:002017-01-24T22:09:57.096-05:00Thanks! Is the bond default spread table missing? ...Thanks! Is the bond default spread table missing? Also, is a link to the lookup table missing?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-65529836017938549222017-01-24T12:10:09.690-05:002017-01-24T12:10:09.690-05:00Which risk-free rate should we use for calculating...Which risk-free rate should we use for calculating a firm in India (for example) cost of equity? If I'm using the 9.05% ERP do I use US Rf or India Rf. Thanks!Akhttps://www.blogger.com/profile/09646479250565629294noreply@blogger.com