December 2012
Intermediate to advanced
250 pages
7h 30m
English
Some tentative conclusions for developed markets
The Equity Market Risk Premium (EMRP) is a simple concept. It represents the additional expected return investors require to invest funds into equities rather than risk-free instruments. However, quantification of the EMRP is highly dependent on the measurement approach adopted and, as a consequence, it is one of the most controversial subjects in financial literature.
There are two basic techniques: the historic approach and the forward-looking approach. Proponents of each camp will argue their case but, in reality, neither is demonstrably correct and the issue remains an ...
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