Your inputs

Are you using weekly or monthly returns? W (M or W)

Current Riskfree Rate 2.00% ! Use today's ten -year government bond rate (make s
Risk Premium 6.18% ! You can use either the historical premium or the imp
Beta 1.192 ! Enter your raw beta
Std Error of Beta 0.076 ! Enter the standard error of beta
Intercept 0.078% ! Enter the intercept. If you are using a Bloomberg be
Past Riskfree rate (Annual) 0.25% ! See attached worksheet for T.Bill rates by year (This

This is what your output shoud look like

Rf (1- Beta) 0.00%
Jensen's Alpha by period 0.079% (Monthly or Weekly)
Jensen's Alpha Annualized 4.19% (Annual)
67% range 1.27 1.12
95% range 1.34 1.04
Expected Return 9.37%
ment bond rate (make sure that you pick the right currency)
ical premium or the implied premium or an augmented premium for country risk. If your company operates in many count

e using a Bloomberg beta page, remember that this is already in % on your Bloomberg print out; in other words, 0.05 is .
T.Bill rates by year (This is a two-year average; adapt it to meet your requirements)
y operates in many countries, you should use a weighted average premium

in other words, 0.05 is .05%.

To compute the equity risk premium, you have to have information on the revenues (or you can use an alterna
down by country or at least by region. I allow for both options

BY COUNTRY
If you have revenues/assets/earnings broken down by country
Country Revenues/ Earnings/Asset ERP Weight Weighted ERP
Argentina 19 14.80% 10.05% 1.49%
Brazil 4 8.43% 2.12% 0.18%
Chile 130 6.85% 68.78% 4.71%
Honduras 23 13.30% 12.17% 1.62%
Mexico 7 8.05% 3.70% 0.30%
United States of America 6 5.80% 3.17% 0.18%
0.00% 0.00% 0.00%
0.00% 0.00% 0.00%
0.00% 0.00% 0.00%
0.00% 0.00% 0.00%
Total 189 100.00% 8.48%

BY REGION
If you are a multinational company and have a breakdown only by region, you can use this table instead
Region Revenues/ Earnings/Asset ERP Weight Weighted ERP
Africa 0 10.09% 0.00% 0.0000%
Asia 2990 7.35% 7.07% 0.5202%
Australia & New Zealand 5.80% 0.00% 0.0000%
Caribbean 0 12.57% 0.00% 0.0000%
Central and South Americ 1295 9.18% 3.06% 0.2813%
Eastern Europe & Russia 8.48% 0.00% 0.0000%
Financial Center 0 5.80% 0.00% 0.0000%
Middle East 6.96% 0.00% 0.0000%
North America 31770 5.80% 75.15% 4.3584%
Western Europe 6223 6.92% 14.72% 1.0188%
Total 42278 100.00% 6.1786%
r you can use an alternate variable such as earninngs or assets) broken

his table instead

 Currency Average riskfree rate - last 2 yearsAverage riskfree rate- last 5 years
US $ 0.20% 0.50%
Euro 0.25% 0.60%
£ 1.00% 2.00%
Yen 0.30% 0.50%
Brazilian Reai' 5.00% 7.00%
Indian Rupee 6.00% 7.00%
Chinese Yuan 3.00% 4.00%
Swiss Franc 0.50% 0.75%

(If you cannot find your currency, use 4% as your average riskfree rate)
 SOVEREIGN RATING BASED COUNTRY & TOT
Country Region Local Currency Rating
Albania Eastern Europe & Russia B1
Angola Africa Ba3
Argentina Central and South Americ B3
Armenia Eastern Europe & Russia Ba2
Australia Australia & New Zealand Aaa
Austria Western Europe Aaa
Azerbaijan Eastern Europe & Russia Baa3
Bahamas Caribbean Baa1
Bahrain Middle East Baa1
Bangladesh Asia Ba3
Barbados Caribbean Baa3
Belarus Eastern Europe & Russia B3
Belgium Western Europe Aa3
Belize Central and South Americ Caa3
Bermuda Caribbean Aa2
Bolivia Central and South Americ Ba3
Bosnia and Herzegovina Eastern Europe & Russia B3
Botswana Africa A2
Brazil Central and South Americ Baa2
Bulgaria Eastern Europe & Russia Baa2
Cambodia Asia B2
Canada North America Aaa
Cayman Islands Caribbean Aa3
Chile Central and South Americ Aa3
China Asia Aa3
Colombia Central and South Americ Baa3
Costa Rica Central and South Americ Baa3
Croatia Eastern Europe & Russia Baa3
Cuba Caribbean Caa1
Cyprus Western Europe B3
Czech Republic Eastern Europe & Russia A1
Denmark Western Europe Aaa
Dominican Republic Caribbean B1
Ecuador Central and South Americ Caa1
Egypt Africa B2
El Salvador Central and South Americ Ba3
Estonia Eastern Europe & Russia A1
Fiji Islands Asia B1
Finland Western Europe Aaa
France Western Europe Aa1
Georgia Eastern Europe & Russia Ba3
Germany Western Europe Aaa
Greece Western Europe Caa3
Guatemala Central and South Americ Ba1
Honduras Central and South Americ B2
Hong Kong Asia Aa1
Hungary Eastern Europe & Russia Ba1
Iceland Western Europe Baa3
India Asia Baa3
Indonesia Asia Baa3
Ireland Western Europe Ba1
Isle of Man Financial Center Aaa
Israel Middle East A1
Italy Western Europe Baa2
Jamaica Caribbean B3
Japan Asia Aa3
Jordan Middle East Ba2
Kazakhstan Eastern Europe & Russia Baa2
Kenya Africa B1
Korea Asia Aa3
Kuwait Middle East Aa2
Latvia Eastern Europe & Russia Baa3
Lebanon Middle East B1
Lithuania Eastern Europe & Russia Baa1
Luxembourg Western Europe Aaa
Macao Asia Aa3
Malaysia Asia A3
Malta Western Europe A3
Mauritius Africa Baa1
Mexico Central and South Americ Baa1
Moldova Eastern Europe & Russia B3
Mongolia Asia B1
Montenegro Eastern Europe & Russia Ba3
Morocco Africa Ba1
Namibia Africa Baa3
Netherlands Western Europe Aaa
New Zealand Australia & New Zealand Aaa
Nicaragua Central and South Americ B3
Nigeria Africa Ba3
Norway Western Europe Aaa
Oman Middle East A1
Pakistan Asia Caa1
Panama Central and South Americ Baa2
Papua New Guinea Asia B1
Paraguay Central and South Americ B1
Peru Central and South Americ Baa2
Philippines Asia Ba1
Poland Eastern Europe & Russia A2
Portugal Western Europe Ba3
Qatar Middle East Aa2
Romania Eastern Europe & Russia Baa3
Russia Eastern Europe & Russia Baa1
Saudi Arabia Middle East Aa3
Senegal Africa B1
Singapore Asia Aaa
Slovakia Eastern Europe & Russia A2
Slovenia Eastern Europe & Russia Baa2
South Africa Africa Baa1
Spain Western Europe Baa3
Sri Lanka Asia B1
St. Maarten Africa Baa1
St. Vincent & the Grenadin Caribbean B2
Suriname Caribbean Ba3
Sweden Western Europe Aaa
Switzerland Western Europe Aaa
Taiwan Asia Aa3
Thailand Asia Baa1
Trinidad and Tobago Caribbean Baa1
Tunisia Africa Baa3
Turkey Western Europe Ba1
Ukraine Eastern Europe & Russia B3
United Arab Emirates Middle East Aa2
United Kingdom Western Europe Aaa
United States of America North America Aaa
Uruguay Central and South Americ Baa3
Venezuela Central and South Americ B1
Vietnam Asia B2
Zambia Africa B1
OVEREIGN RATING BASED COUNTRY & TOTAL EQUITY RISK PREMIUM CDS BASED COUNTRY & TOTAL
Rating-based Default SpreaTotal Equity Risk PremiuCountry Risk PremiumCDS Default Spread
4.00% 11.80% 6.00% NA
3.25% 10.68% 4.88% NA
6.00% 14.80% 9.00% 13.07%
2.75% 9.93% 4.13% NA
0.00% 5.80% 0.00% 0.86%
0.00% 5.80% 0.00% 0.79%
2.00% 8.80% 3.00% NA
1.50% 8.05% 2.25% NA
1.50% 8.05% 2.25% 2.52%
3.25% 10.68% 4.88% NA
2.00% 8.80% 3.00% NA
6.00% 14.80% 9.00% NA
0.70% 6.85% 1.05% 1.24%
10.00% 20.80% 15.00% NA
0.50% 6.55% 0.75% NA
3.25% 10.68% 4.88% NA
6.00% 14.80% 9.00% NA
1.00% 7.30% 1.50% NA
1.75% 8.43% 2.63% 1.44%
1.75% 8.43% 2.63% 1.41%
5.00% 13.30% 7.50% NA
0.00% 5.80% 0.00% NA
0.70% 6.85% 1.05% NA
0.70% 6.85% 1.05% 0.99%
0.70% 6.85% 1.05% 1.02%
2.00% 8.80% 3.00% 1.35%
2.00% 8.80% 3.00% 3.91%
2.00% 8.80% 3.00% 2.99%
7.00% 16.30% 10.50% NA
6.00% 14.80% 9.00% 6.55%
0.85% 7.08% 1.28% 0.89%
0.00% 5.80% 0.00% 0.69%
4.00% 11.80% 6.00% NA
7.00% 16.30% 10.50% NA
5.00% 13.30% 7.50% 5.76%
3.25% 10.68% 4.88% NA
0.85% 7.08% 1.28% 0.95%
4.00% 11.80% 6.00% NA
0.00% 5.80% 0.00% 0.60%
0.25% 6.18% 0.38% 1.44%
3.25% 10.68% 4.88% NA
0.00% 5.80% 0.00% 0.82%
10.00% 20.80% 15.00% NA
2.40% 9.40% 3.60% NA
5.00% 13.30% 7.50% NA
0.25% 6.18% 0.38% 1.03%
2.40% 9.40% 3.60% 3.16%
2.00% 8.80% 3.00% 2.16%
2.00% 8.80% 3.00% NA
2.00% 8.80% 3.00% 1.81%
2.40% 9.40% 3.60% 2.54%
0.00% 5.80% 0.00% NA
0.85% 7.08% 1.28% 1.61%
1.75% 8.43% 2.63% 3.03%
6.00% 14.80% 9.00% NA
0.70% 6.85% 1.05% 1.32%
2.75% 9.93% 4.13% NA
1.75% 8.43% 2.63% 1.97%
4.00% 11.80% 6.00% NA
0.70% 6.85% 1.05% 1.13%
0.50% 6.55% 0.75% NA
2.00% 8.80% 3.00% 1.70%
4.00% 11.80% 6.00% 4.72%
1.50% 8.05% 2.25% 1.58%
0.00% 5.80% 0.00% NA
0.70% 6.85% 1.05% NA
1.15% 7.53% 1.73% 1.14%
1.15% 7.53% 1.73% NA
1.50% 8.05% 2.25% NA
1.50% 8.05% 2.25% 1.36%
6.00% 14.80% 9.00% NA
4.00% 11.80% 6.00% NA
3.25% 10.68% 4.88% NA
2.40% 9.40% 3.60% 2.79%
2.00% 8.80% 3.00% NA
0.00% 5.80% 0.00% 0.83%
0.00% 5.80% 0.00% 0.72%
6.00% 14.80% 9.00% NA
3.25% 10.68% 4.88% NA
0.00% 5.80% 0.00% 0.41%
0.85% 7.08% 1.28% NA
7.00% 16.30% 10.50% 7.90%
1.75% 8.43% 2.63% 1.36%
4.00% 11.80% 6.00% NA
4.00% 11.80% 6.00% NA
1.75% 8.43% 2.63% 1.38%
2.40% 9.40% 3.60% 1.59%
1.00% 7.30% 1.50% 1.30%
3.25% 10.68% 4.88% 4.93%
0.50% 6.55% 0.75% 1.28%
2.00% 8.80% 3.00% 2.81%
1.50% 8.05% 2.25% 1.82%
0.70% 6.85% 1.05% 0.78%
4.00% 11.80% 6.00% NA
0.00% 5.80% 0.00% NA
1.00% 7.30% 1.50% 1.42%
1.75% 8.43% 2.63% 2.59%
1.50% 8.05% 2.25% 2.03%
2.00% 8.80% 3.00% 3.14%
4.00% 11.80% 6.00% NA
1.50% 8.05% 2.25% NA
5.00% 13.30% 7.50% NA
3.25% 10.68% 4.88% NA
0.00% 5.80% 0.00% 0.41%
0.00% 5.80% 0.00% 0.76%
0.70% 6.85% 1.05% NA
1.50% 8.05% 2.25% 1.43%
1.50% 8.05% 2.25% NA
2.00% 8.80% 3.00% 4.21%
2.40% 9.40% 3.60% 1.79%
6.00% 14.80% 9.00% 6.51%
0.50% 6.55% 0.75% NA
0.00% 5.80% 0.00% 0.74%
0.00% 5.80% 0.00% 0.67%
2.00% 8.80% 3.00% NA
4.00% 11.80% 6.00% 6.55%
5.00% 13.30% 7.50% 2.74%
4.00% 11.80% 6.00% NA
ASED COUNTRY & TOTAL EQUITY RISK PREMIUMS
Total Equity Risk PremiumCountry Risk Premium
NA NA
NA NA
24.40% 18.60%
NA NA
6.09% 0.29%
5.98% 0.18%
NA NA
NA NA
8.58% 2.78%
NA NA
NA NA
NA NA
6.66% 0.86%
NA NA
NA NA
NA NA
NA NA
NA NA
6.96% 1.16%
6.91% 1.11%
NA NA
NA NA
NA NA
6.28% 0.48%
6.33% 0.53%
6.82% 1.02%
10.66% 4.86%
9.28% 3.48%
NA NA
14.62% 8.82%
6.13% 0.33%
5.83% 0.03%
NA NA
NA NA
13.44% 7.64%
NA NA
6.22% 0.42%
NA NA
5.70% -0.11%
6.96% 1.16%
NA NA
6.03% 0.23%
NA NA
NA NA
 NA NA
6.34% 0.54%
9.54% 3.74%
8.04% 2.24%
NA NA
7.51% 1.71%
8.61% 2.81%
NA NA
7.21% 1.41%
9.34% 3.54%
NA NA
6.78% 0.98%
NA NA
7.75% 1.95%
NA NA
6.49% 0.69%
NA NA
7.35% 1.55%
11.88% 6.08%
7.17% 1.37%
NA NA
NA NA
6.51% 0.71%
NA NA
NA NA
6.84% 1.04%
NA NA
NA NA
NA NA
8.98% 3.18%
NA NA
6.04% 0.24%
5.88% 0.07%
NA NA
NA NA
5.41% -0.39%
NA NA
16.65% 10.85%
6.84% 1.04%
NA NA
NA NA
6.87% 1.07%
7.18% 1.38%
6.75% 0.95%
12.19% 6.39%
6.72% 0.92%
 9.01% 3.21%
7.53% 1.73%
5.97% 0.17%
NA NA
NA NA
6.93% 1.13%
8.68% 2.88%
7.84% 2.04%
9.51% 3.71%
NA NA
NA NA
NA NA
NA NA
5.41% -0.39%
5.94% 0.14%
NA NA
6.94% 1.14%
NA NA
11.11% 5.31%
7.48% 1.68%
14.56% 8.76%
NA NA
5.91% 0.11%
5.80% 0.00%
NA NA
14.62% 8.82%
8.91% 3.11%
NA NA
Region Default Spread (Weighted average)
Total ERP (Weighted Average)
Africa 2.86% 4.29%
Asia 1.04% 1.55%
Australia & New Zealand 0.00% 0.00%
Caribbean 4.52% 6.77%
Central and South Americ 2.26% 3.38%
Eastern Europe & Russia 1.79% 2.68%
Financial Center 0.00% 0.00%
Middle East 0.77% 1.16%
North America 0.00% 0.00%
Western Europe 0.75% 1.12%
Grand Total 2.33% 9.30%
Country Risk Premium (Weighted Average)
10.09%
7.35%
5.80%
12.57%
9.18%
8.48%
5.80%
6.96%
5.80%
6.92%
3.50%