Question

does anybody know where can i find the country risk premium for Spain? My second question would be where to find details to compute beta and how to do it when i do not have access to bloomberg or such. thanx

Answer 1

Hi
There is no simple answer to this question. Indeed, ask 6 practicioners and you're likely to get 5 different figures - it's subjective.

Good places to look are on Bloomberg, Reuters Thompson, or Standard & Poors - Go to your library, preferably Business-school section.

Some good proxies I can think of are : go look for market measures such as:
- compare the Spanish government bond risk premium over US Treasuries or German Bunds of equal maturity (this gives the _Credit Risk of the Spanish Governement_ ), look at CDS spreads, etc.
- Do a regression on a large set of realised (historical) rates of return in Spanish blue-chip companies vs. blue-chips from US or Germany

For Beta you'll have to do the regression just mentioned. Or you could look it up in the literature at your library / internet.

What kind of asset class? Blue chip equity stock? Bonds ?