Explain consensus among the chief authors in finance

Is there any consensus among the chief authors in finance concerning the market risk premium?

E

Expert

Verified

In Fernández (2006) we come at this conclusion after analyzing over 100 books and financial articles. The given chart and table demonstrate this point:

379_Risk premium recommended in several books and papers.png

Figure: Risk premium recommended in several books and papers

2282_table market risk.png

Here,

REP = required equity premium;

HEP = historical equity premium;

IEP = implied equity premium;

EEP = Expected equity premium

   Related Questions in Corporate Finance

  • Q : Portfolio return probability XY Company

    XY Company has made a portfolio of such three securities:

    1154_table.jpg

    The correlation coeffic

  • Q : Difference between intrinsic value and

    XYZ explained the difference between intrinsic value and book value in terms of the money spent on a college education. Please provide another example using a different simile.

  • Q : Assessing market expectations using CAPM

    Assume that the risk-free rate is 1% and the expected market return is 9%. You are considering purchasing Super Soft stock, which currently sells for $100 a share and will pay its next (annual) dividend of $1.00 exactly one year from today. Super Soft is considered to

  • Q : What is the expected risk premium on

    You have decided to invest 30 percent in X; 30 percent in Y; and 40 percent in Z. Theprobability of the state of the economy is Boom 25%; Normal 60%; and, Bust 15%. The rateof return for stock X is Boom .20; Normal .15; and, Bust .00. The rate of return for stock Y is

  • Q : Corporate Earnings Analysis exercise

    Identify two comparable corporations.  Explain why you think they are comparable to your corporation.

    Earnings analysis:  Do an earnings analysis of your corporation.  Calculate and plot.

    Q : Commercial bank problems For an

    For an enhanced understanding of banking industry, it is significant to look at the atmosphere in which commercial banks operate. Production growth and globalization are two main forces reshaping the banking industry nowadays. The following two questions are associate

  • Q : How could we project exchange rates How

    How could we project exchange rates within order to be capable to forecast exchange differences?

  • Q : Data Case Please assist with the

    Please assist with the attached Data Case assignment

  • Q : What is Regular meeting of day-to-day

    Regular meeting of day-to-day commitments: The estimation of WCR also helps to ensure that there is positive WC existence. This proves helpful in meeting requirements which are regular in nature such as payments of salaries, wages, rental charges etc.

  • Q : Which parameter good measures value

    Which parameter good measures value creation; the Economic Value Added (EVA), the CVA (Cash Value Added) or the economic profit?

2015 ©TutorsGlobe All rights reserved. TutorsGlobe Rated 4.8/5 based on 34139 reviews.