Download This PaperDiscount Rate (Risk-Free Rate and Market Risk Premium) Used for 41 Countries in 2015: A Survey
16 Pages Posted: 25 Apr 2015 Last revised: 18 Oct 2017
Date Written: October 17, 2017
Abstract
This paper contains the statistics of a survey about the Risk-Free Rate (RF) and of the Market Risk Premium (MRP) used in 2015 for 41 countries. We got answers for 68 countries, but we only report the results for 41 countries with more than 25 answers.
The average (RF) used in 2015 was smaller than the one used in 2013 in 26 countries (in 11 of them the difference was more than 1%). In 8 countries the average (RF) used in 2015 was more than a 1% higher than the one used in 2013.
The change between 2013 and 2015 of the average Market risk premium used was higher than 1% for 13 countries. Most of the respondents use for US, Europe and UK a Risk-Free Rate (RF) higher than the yield of the 10-year Government bonds.
Keywords: equity premium; required equity premium; expected equity premium; risk-free rate; heterogeneous expectations
JEL Classification: G12, G31, M21
Suggested Citation: Suggested Citation
Pablo Fernandez (Contact Author)
IESE Business School ( email )
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Alberto Ortiz Pizarro
University of Navarra, IESE Business School ( email )
Camino del Cerro del Águila, 3
Madrid, 28023
Spain