Hello AF community!
I need help figuring something out and a refresher of some sorts. Any help will be much appreciated.
I am trying to determine cost of equity for a security in India from a foreign investors point of view (say USA). To do so, I am adopting the CAPM methodology using India’s risk free, beta of indian security and ERP of the Indian market, instead of building up from US risk-free and US ERP and adding country risk premium to it.