Wednesday, May 16, 2018

Market Risk Premium of the ASX200 for April 2018: 8.863%

Time for another Market Risk Premium update


ASX average returns over the last 2 years = 6.717% (its been a bit of a bull run)


Dividend Yield Average over the last 2 years = 4.246 %


ASX200 total return is now at 10.963% which isn't too bad at all. Anything with over 10 is pretty good in todays times.


Risk Free rate really (average 10 year bond rate over 2 years) hasn't moved much...still at 2.10%


Therefore market risk premium is now 8.863%


This is quite a high value. Will be interesting if it falls.

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