The equity risk premium refers to the excess return that investing in the stock market provides over a risk-free rate, typically represented by government bonds. It compensates investors for taking on the higher risk associated with equities. Estimating the equity risk premium is essential for asset allocation,
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Harvesting the Equity Risk Premia Through…
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The equity risk premium refers to the excess return that investing in the stock market provides over a risk-free rate, typically represented by government bonds. It compensates investors for taking on the higher risk associated with equities. Estimating the equity risk premium is essential for asset allocation,