Now that we've explored the risk premium models and their challenges, it's time to look at them with actual data. The first step is to find a reasonable range of expected equity returns.

CAPM measures the required rate of return on equity investments, and it is an important element of modern portfolio theory (MPT) and discounted cash flows (DCF) valuation. The market risk premium ...

The market’s expected return moves inversely to prices, and so, the ongoing slide in the S&P 500 Index equates with higher ...

Chacko, George C., Peter A. Hecht, Vincent Dessain, and Anders Sjoman. "Deutsche Bank: Discussing the Equity Risk Premium." Harvard Business School Case 205-040 ...

As highlighted by market analysts on November 14, the S&P 500 equity risk premium has significantly shrunk, reaching near-zero lows. This new level is the lowest since 2000 when the value went ...

The US stock market is struggling this year, but the low-volatility equity risk premium is still outperforming by a wide ...