Required market risk premium among countries in 2012

This paper contains the statistics of the Equity Premium or Market Risk Premium (MRP) used in 2012 for 82 countries. We got 7192 answers for 93 countries, but we only report the results for 82 countries with more than 5 answers. Most previous surveys have been interested in the Expected MRP, but thi...

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Autores: Fernández, P. (Pablo)|||/items/a6e0c9a2-2906-404e-b688-e21cc34cfda0, Aguirreamalloa, J. (Javier)|||/items/34052323-37fd-4eee-a728-dd9f22ff1913, Fernandez-Acín, I. (Isabel)|||/items/726c6c3e-783c-4053-aefe-5b7917b4136e
Tipo de documento: artigo
Data de publicação:2015
País:España
Recursos:Universidad de Navarra
Repositório:Dadun. Depósito Académico Digital de la Universidad de Navarra
Idioma:inglês
OAI Identifier:oai:dadun.unav.edu:10171/69280
Acesso em linha:https://hdl.handle.net/10171/69280
Access Level:Acceso aberto
Palavra-chave:Equity premium
Required equity premium
Expected equity premium
Historical equity premium
Market risk premium
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spelling Required market risk premium among countries in 2012Fernández, P. (Pablo)|||/items/a6e0c9a2-2906-404e-b688-e21cc34cfda0Aguirreamalloa, J. (Javier)|||/items/34052323-37fd-4eee-a728-dd9f22ff1913Fernandez-Acín, I. (Isabel)|||/items/726c6c3e-783c-4053-aefe-5b7917b4136eEquity premiumRequired equity premiumExpected equity premiumHistorical equity premiumMarket risk premiumThis paper contains the statistics of the Equity Premium or Market Risk Premium (MRP) used in 2012 for 82 countries. We got 7192 answers for 93 countries, but we only report the results for 82 countries with more than 5 answers. Most previous surveys have been interested in the Expected MRP, but this survey asks about the Required MRP. The paper also contains the references used to justify the MRP. The great dispersion of the answers to the survey shows that the assumption of a representative investor (or homogeneous expectations …) has little to do with the real world. This survey also links with the Equity Premium Puzzle. It may be explained by the fact that many market participants use historical data and advice from textbooks and finance professors. Consequently, ex-ante equity premia have been high, most market prices have been consistently undervalued, and the ex-post risk premia has been also high. Many investors use historical data and textbook prescriptions to estimate the required and the expected equity premium, the undervaluation and the high ex-post risk premium are self fulfilling prophecies.KeAi Communications Co. LtdDadun. Depósito Académico Digital Universidad de Navarra20242024-03-2620152015-07-2620152015-07-26journal articlehttp://purl.org/coar/resource_type/c_6501info:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/10171/69280reponame:Dadun. Depósito Académico Digital de la Universidad de Navarrainstname:Universidad de NavarraInglésengopen accesshttp://purl.org/coar/access_right/c_abf2info:eu-repo/semantics/openAccessoai:dadun.unav.edu:10171/692802026-06-21T12:47:57Z
dc.title.none.fl_str_mv Required market risk premium among countries in 2012
title Required market risk premium among countries in 2012
spellingShingle Required market risk premium among countries in 2012
Fernández, P. (Pablo)|||/items/a6e0c9a2-2906-404e-b688-e21cc34cfda0
Equity premium
Required equity premium
Expected equity premium
Historical equity premium
Market risk premium
title_short Required market risk premium among countries in 2012
title_full Required market risk premium among countries in 2012
title_fullStr Required market risk premium among countries in 2012
title_full_unstemmed Required market risk premium among countries in 2012
title_sort Required market risk premium among countries in 2012
dc.creator.none.fl_str_mv Fernández, P. (Pablo)|||/items/a6e0c9a2-2906-404e-b688-e21cc34cfda0
Aguirreamalloa, J. (Javier)|||/items/34052323-37fd-4eee-a728-dd9f22ff1913
Fernandez-Acín, I. (Isabel)|||/items/726c6c3e-783c-4053-aefe-5b7917b4136e
author Fernández, P. (Pablo)|||/items/a6e0c9a2-2906-404e-b688-e21cc34cfda0
author_facet Fernández, P. (Pablo)|||/items/a6e0c9a2-2906-404e-b688-e21cc34cfda0
Aguirreamalloa, J. (Javier)|||/items/34052323-37fd-4eee-a728-dd9f22ff1913
Fernandez-Acín, I. (Isabel)|||/items/726c6c3e-783c-4053-aefe-5b7917b4136e
author_role author
author2 Aguirreamalloa, J. (Javier)|||/items/34052323-37fd-4eee-a728-dd9f22ff1913
Fernandez-Acín, I. (Isabel)|||/items/726c6c3e-783c-4053-aefe-5b7917b4136e
author2_role author
author
dc.contributor.none.fl_str_mv Dadun. Depósito Académico Digital Universidad de Navarra
dc.subject.none.fl_str_mv Equity premium
Required equity premium
Expected equity premium
Historical equity premium
Market risk premium
topic Equity premium
Required equity premium
Expected equity premium
Historical equity premium
Market risk premium
description This paper contains the statistics of the Equity Premium or Market Risk Premium (MRP) used in 2012 for 82 countries. We got 7192 answers for 93 countries, but we only report the results for 82 countries with more than 5 answers. Most previous surveys have been interested in the Expected MRP, but this survey asks about the Required MRP. The paper also contains the references used to justify the MRP. The great dispersion of the answers to the survey shows that the assumption of a representative investor (or homogeneous expectations …) has little to do with the real world. This survey also links with the Equity Premium Puzzle. It may be explained by the fact that many market participants use historical data and advice from textbooks and finance professors. Consequently, ex-ante equity premia have been high, most market prices have been consistently undervalued, and the ex-post risk premia has been also high. Many investors use historical data and textbook prescriptions to estimate the required and the expected equity premium, the undervaluation and the high ex-post risk premium are self fulfilling prophecies.
publishDate 2015
dc.date.none.fl_str_mv 2015
2015-07-26
2015
2015-07-26
2024
2024-03-26
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://hdl.handle.net/10171/69280
url https://hdl.handle.net/10171/69280
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv KeAi Communications Co. Ltd
publisher.none.fl_str_mv KeAi Communications Co. Ltd
dc.source.none.fl_str_mv reponame:Dadun. Depósito Académico Digital de la Universidad de Navarra
instname:Universidad de Navarra
instname_str Universidad de Navarra
reponame_str Dadun. Depósito Académico Digital de la Universidad de Navarra
collection Dadun. Depósito Académico Digital de la Universidad de Navarra
repository.name.fl_str_mv
repository.mail.fl_str_mv
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