Discount 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

See all articles by Pablo Fernandez

Pablo Fernandez

University of Navarra - IESE Business School

Alberto Ortiz Pizarro

University of Navarra, IESE Business School

Isabel Fernández Acín

University of Navarra - University of Navarra, Students

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

Fernandez, Pablo and Ortiz Pizarro, Alberto and Fernández Acín, Isabel, Discount Rate (Risk-Free Rate and Market Risk Premium) Used for 41 Countries in 2015: A Survey (October 17, 2017). Available at SSRN: https://ssrn.com/abstract=2598104 or http://dx.doi.org/10.2139/ssrn.2598104

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/

Alberto Ortiz Pizarro

University of Navarra, IESE Business School ( email )

Camino del Cerro del Águila, 3
Madrid, 28023
Spain

Isabel Fernández Acín

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

Pamplona
Spain

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