for the cost of capital formular = rfr+beta(MKt return-rfr) we are always give the mkt return in the CFA questions but in real life how do we calculate mkt return? i am trying to do so for our stock mkt its relatively new and small with on 15 companies listed but the is no information such as betas, mkt return, so please help.
I suggest you read this from Damodaran’s book on valuation. It gives some insight on how to compute market risk premium for emerging markets and markets with short trading history. If you what to know how this is done for mature markets, then you should read CFA LII book on equities. Cheers p.s. go with Damodaran for both things. you can download it from his website.