Market Risk Premium and Risk-Free Rate Used for 69 Countries in 2019: A Survey

15 Pages Posted: 18 Apr 2019 Last revised: 26 May 2019

See all articles by Pablo Fernandez

Pablo Fernandez

University of Navarra - IESE Business School

Mar Martinez

University of Navarra, IESE Business School

Isabel Fernández Acín

University of Navarra - University of Navarra, Students

Date Written: March 23, 2019

Abstract

This paper contains the statistics of a survey about the Risk-Free Rate (RF) and the Market Risk Premium (MRP) used in 2019 for 69 countries. We got answers for 84 countries, but we only report the results for 69 countries with more than 8 answers.

Due to “Quantitative Easing”, many respondents use for European countries a RF higher than the yield of the 10-year Government bonds. The coefficient of variation (standard deviation/average) of RF is, on average, 2.75 times higher than the CV of MRP for 24 European countries.

For the second time of this survey, 9 respondents provided — without being asked for — a different MRP for Spain and Catalonia (on average, 6.4% for Spain and 11.5% for Catalonia).

Keywords: equity premium; required equity premium; expected equity premium; risk-free rate; heterogeneous expectations

JEL Classification: G12, G31, M21

Suggested Citation

Fernandez, Pablo and Martinez, Mar and Fernández Acín, Isabel, Market Risk Premium and Risk-Free Rate Used for 69 Countries in 2019: A Survey (March 23, 2019). Available at SSRN: https://ssrn.com/abstract=3358901 or http://dx.doi.org/10.2139/ssrn.3358901

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/

Mar Martinez

University of Navarra, IESE Business School ( email )

Camino Cerro del Aguila 3
Madrid, 28023
Spain

Isabel Fernández Acín

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

Pamplona
Spain

Register to save articles to
your library

Register

Paper statistics

Downloads
7,975
Abstract Views
17,374
rank
688
PlumX Metrics