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Finance 21 Online
OpenStudy (anonymous):

Hi, With the aim of updating our cost of capital, I am looking for the marktet premium i.e. the historic stock return over risk-free rate. I have the daily quotation for the index. In order to calculate the yearly average return of the index should I take daily average return and multiply by the numbers of quoted days in the year or should I take a moving average of yearly return ?

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