23 estimated by comparing a emerging market equity index to an emerging market governmentpublic bond index) to estimate country risk premium. 01 for mature markets (obtained by looking at the implied premium for the s&p 500 on april 1, 2020) to get the total risk premium. Country risk premium - crp country risk premium (crp) is the additional risk associated with investing in an international company, rather than the domestic market. The market risk premium is the additional return thats expected on an index or portfolio of investments above the given risk-free rate. Due to this increase in the equity market risk premium and our previous statement to keep the equity market risk premium at 5. 5 despite a minor drop (related to the tax-effect), we have decided to keep the current equity market risk premium equal to 5. The average market risk premium in the united states remained at 5. This suggests that investors demand a slightly higher return for investments in that country, in exchange for. To estimate the equity risk premium for a country, i start with a mature market premium and add an additional country risk premium, based upon the risk of the country in question. Step 1 estimating mature market risk premium to estimate the mature market risk premium, i compute the implied equity risk premium for the s&p 500.