ramdabom

Not sure if I get your query exactly, but I think you are just looking at this the wrong way. Mkt Risk Premium is E(Rmkt) - RFR. The CRP is then added to the result of that to compensate for additional sovereign risk. Don't think it's just added to the RFR, it's added to the result of E(Rmtk) - RFR, i.e. the Market Risk Premium.