CAPMForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › CAPMThis topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts May 4, 2018 at 5:32 pm #450109 ziniyaMemberTopics: 14Replies: 4☆Sir, Question#189 of BPP kit asking for the calculation of cost of equity.Using CAPM formula the in my opinion it should be the difference of Rm-Rf to be put in the question.The examiner has put the Rf 8% only and then multiplied it with equity beta. I am not understanding what he has done here.Please help me with this.ThanksRegards May 5, 2018 at 8:39 am #450169 John MoffatKeymasterTopics: 57Replies: 54478☆☆☆☆☆The question says that the market premium is 8%. The market premium is the excess of the market return over the risk free rate. I do make this point in my free lectures.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)The topic ‘CAPM’ is closed to new replies.