Add to ORKGEstimates of the historical equity risk premium in the UK are in the range 7 per cent to 9 per cent per annum. Until recently, portfolio investors and industrialists have been encouraged to use a premium of this order in making investment decisions. The purpose of this paper is to review the risk premium debate and to re-inforce the case for rejecting historical experience in formulating future investment plans. A simulation of historical investor expectations suggests that a disciplined appraisal would have identified an average risk premium of less than two per cent per annum. A forward-looking assessment of reasonable expectations suggests that a risk premium assumptions of around 2.5 per cent would be realistic at present
In light of the ongoing debate over the value of the equity risk premium, its increasing use in the ...
In light of the ongoing debate over the value of the equity risk premium, its increasing use in the ...
Investors accept that there is uncertainty, or risk, associated with equity investment returns. Cons...
Recent research on the equity risk premium has questioned the ability of historical estimates of the...
Recent research on the equity risk premium has questioned the ability of historical estimates of th...
Discussion paper. Final version published in Review of Behavioral Finance, Vol. 3 Iss: 1, pp.1 - 26I...
Equity risk premiums are a central component of every risk and return model in finance. Given their ...
Equity risk premiums are a central component of every risk and return model in finance. Given their ...
This paper examines the UK equity premium over more than a century using dividend growth to estimate...
In historical perspective, equity returns have been higher than interest rates but have also varied ...
In historical perspective, equity returns have been higher than interest rates but have also varied ...
In historical perspective, equity returns have been higher than interest rates but have also varied ...
In historical perspective, equity returns have been higher than interest rates but have also varied ...
In historical perspective, equity returns have been higher than interest rates but have also varied ...
Abstract: The expected equity risk premium is arguably the most important number in modern finance w...
In light of the ongoing debate over the value of the equity risk premium, its increasing use in the ...
In light of the ongoing debate over the value of the equity risk premium, its increasing use in the ...
Investors accept that there is uncertainty, or risk, associated with equity investment returns. Cons...
Recent research on the equity risk premium has questioned the ability of historical estimates of the...
Recent research on the equity risk premium has questioned the ability of historical estimates of th...
Discussion paper. Final version published in Review of Behavioral Finance, Vol. 3 Iss: 1, pp.1 - 26I...
Equity risk premiums are a central component of every risk and return model in finance. Given their ...
Equity risk premiums are a central component of every risk and return model in finance. Given their ...
This paper examines the UK equity premium over more than a century using dividend growth to estimate...
In historical perspective, equity returns have been higher than interest rates but have also varied ...
In historical perspective, equity returns have been higher than interest rates but have also varied ...
In historical perspective, equity returns have been higher than interest rates but have also varied ...
In historical perspective, equity returns have been higher than interest rates but have also varied ...
In historical perspective, equity returns have been higher than interest rates but have also varied ...
Abstract: The expected equity risk premium is arguably the most important number in modern finance w...
In light of the ongoing debate over the value of the equity risk premium, its increasing use in the ...
In light of the ongoing debate over the value of the equity risk premium, its increasing use in the ...
Investors accept that there is uncertainty, or risk, associated with equity investment returns. Cons...