Explain consensus among the chief authors in finance

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




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


REP = required equity premium;

HEP = historical equity premium;

IEP = implied equity premium;

EEP = Expected equity premium

   Related Questions in Corporate Finance

  • Q : Explain investment of bank for

    When my company is not listed, therefore the investment banks apply an illiquidity premium. In fact, they say this is an illiquidity premium but then they call this a small cap premium. Only one of the banks, apparently based upon Tit

  • Q : What is the sales of the firm The

    The financial ratios of a firm are as follows.

    Current ratio = 1.33 Acid-test ratio = 0.80 Current liabilities = 40,000 Inventory turnover ratio = 6 

    What is the sales of the firm?

  • Q : Who was the first to quantify the idea

    Who was the first to quantify the idea of Brownian motion?

  • Q : Who explained market-neutral delta

    Who explained market-neutral delta hedging?

  • Q : Porters Secondary activities Porter's

    Porter's Secondary activities:

    1. Procurement:

    • Identification process of raw material.
    • Identification process of identifying probable suppliers.
    • Process of purchasing and calling quotes.

    2. Human Resource management:

  • Q : Leverage ratio problem Handy Inc has

    Handy Inc has debt-to-assets ratio of 40%, tax rate of 35%, and total value of $100 million. W. C. Handy, the CFO, would like to increase the leverage ratio to 42%, and he believes that there will be no change in the bankruptcy cost of the company. How many dollars wo

  • Q : What are capital investment The capital

    The capital investment appraisal techniques such as NPV, IRR, ARR, PV and Time value of money have become irrelevant post Celtic Tiger. Due to the depth of the recession companies do not have budgets to invest. Discus

    First use this information when you are writing this essay:


  • Q : Is this better to repurchase shares or

    Assuming a company needs to distribute money to shareholders of it, is this better to repurchase shares or to distribute dividends?

  • Q : Problem on Decision variables A factory

    A factory has three distinct systems for making similar product:

    System 1: Worker runs 3 machines of type-A, each of which costs $20 per day to run, each generates 100 units per day and the worker is paid $40 per day.
    System 2

  • 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

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