Abstract

http://ssrn.com/abstract=1609563
 
 

References (5)



 
 

Citations (6)



 


 



Market Risk Premium Used in 2010 by Analysts and Companies: A Survey with 2,400 Answers


Pablo Fernandez


University of Navarra - IESE Business School

Javier Del Campo Baonza


affiliation not provided to SSRN

May 21, 2010


Abstract:     
The average MRP used by analysts in the USA (5.1%) was similar to the one used by their colleagues in Europe (5.0%). But the average MRP used by companies in the USA (5.3%) was smaller than the one used by companies in Europe (5.7%), and UK (5.6%).

The dispersion of the MRP used was high, but lower than the one of the professors: the average range of MRP used by analysts (companies) for the same country was 5.7% (4.1%) and the average standard deviation was 1.7% (1.2%). These statistics were 7.4% and 2.4% for the professors.

The paper also shows the MRP used in more than 20 countries and the MRP used in 2009.

The paper also contains the references that analysts and companies use to justify their MRP, and comments from 89 respondents that illustrate the various interpretations of what is the required MRP.

Number of Pages in PDF File: 15

Keywords: market risk premium, required equity premium, expected equity premium, historical equity premium

JEL Classification: G12, G31, M21

working papers series





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Date posted: May 19, 2010 ; Last revised: May 24, 2010

Suggested Citation

Fernandez, Pablo and del Campo Baonza, Javier, Market Risk Premium Used in 2010 by Analysts and Companies: A Survey with 2,400 Answers (May 21, 2010). Available at SSRN: http://ssrn.com/abstract=1609563 or http://dx.doi.org/10.2139/ssrn.1609563

Contact Information

Pablo Fernandez (Contact Author)
University of Navarra - IESE Business School ( email )
Camino del Cerro del Aguila 3
28023 Madrid
Spain
+34 91 357 0809 (Phone)
+34 91 357 2913 (Fax)
HOME PAGE: http://web.iese.edu/PabloFernandez/
Javier Del Campo Baonza
affiliation not provided to SSRN ( email )
Feedback to SSRN


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