Market Risk Premium Used in 88 Countries in 2014: A Survey with 8,228 Answers

18 Pages Posted: 15 Jun 2014 Last revised: 20 Jun 2014

See all articles by Pablo Fernandez

Pablo Fernandez

University of Navarra - IESE Business School

Pablo Linares

University of Navarra, IESE Business School

Isabel Fernández Acín

University of Navarra - University of Navarra, Students

Date Written: June 20, 2014

Abstract

This paper contains the statistics of the Equity Premium or Market Risk Premium (MRP) used in 2014 for 88 countries. We got answers for more countries, but we only report the results for 88 countries with more than 6 answers.

37% of the MRP used in 2014 decreased (vs. 2013) and 9% increased.

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, comments from 30 persons that do not use MRP, and comments from 53 persons that do use MRP.

Keywords: equity premium; required equity premium; expected equity premium; historical equity premium

JEL Classification: G12, G31, M21

Suggested Citation

Fernandez, Pablo and Linares, Pablo and Fernández Acín, Isabel, Market Risk Premium Used in 88 Countries in 2014: A Survey with 8,228 Answers (June 20, 2014). Available at SSRN: https://ssrn.com/abstract=2450452 or http://dx.doi.org/10.2139/ssrn.2450452

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/

Pablo Linares

University of Navarra, IESE Business School ( email )

Camino del Cerro del Aguila 3
Madrid, 28023
Spain
+34 91.211.31.81 (Phone)

Isabel Fernández Acín

University of Navarra - University of Navarra, Students ( email )

Pamplona
Spain

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