The Latest Risk-Free Rates of Return and Equity Risk Premium

Diversiview uses the following RF (risk-free rates of return) and ERP (equity risk premium) values to calculate the expected return (CAPM) for individual securities, as well as other indicators such as Portfolio Alpha.

Market / Country
RF Instrument
RF value
(instrument yield)
ERP
for country
ASX / AU Australia Bond 10 Year Yield4.55%3.95%
NASDAQ & NYSE / US10 Year US Treasury Yield4.04%4.36%
BSE & NSE / IN
+ MUTUAL FUNDS / IN
India 10-Year Government Bond6.50%7.20%
HKEX / HK Hong Kong 10-Year Government Bond2.933%4.84%
LSE / UKUK Gilt 10 Year Yield4.48%4.84%
DFM / UAEUS dollar-denominated 10-year UAE Bond4.857%4.68%

Updates:

RF are updated at least once a month (usually weekly), from the respective instruments listed above. ERP values are updated twice a year, or more often if new values become available.

Values:

RF values are yields of the instruments listed above, sourced from public governments websites.

The equity risk premium (ERP) reflects fundamental judgments we make about how much risk we see in an economy/market and what price we attach to that risk.

Country ERP values are based on the Implied ERP for US as calculated by Prof Aswath Damodaran from the Stern School of Business at New York University.

Implied ERP for US on 1 November, 2025= 3.95% (Trailing 12 month cash yield)

If you have any questions about the above information, please contact the team at contact@lensellgroup.com.

The Latest Risk-Free Rates of Return and Equity Risk Premium - Diversiview

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