The Equity Premium in India

15 Pages Posted: 16 Aug 2006 Last revised: 24 Jun 2010

See all articles by Rajnish Mehra

Rajnish Mehra

Arizona State University (ASU) - W.P Carey School of Business, Department of Economics; National Bureau of Economic Research (NBER)

Date Written: August 2006

Abstract

In this article we examine the Equity Premium in the Indian context and review the related literature. The equity premium is the returned earned by a well-diversified stock portfolio in excess of that earned by a risk free security such as a Treasury Bill. Consistent with U.S. experience we find that the Indian equity premium has been quite high in the post 1991 period, averaging 9.7% above the corresponding risk free security. It is difficult to justify such a premium based on theoretical considerations.The article is an entry prepared for the Oxford Companion to Economics in India edited by Kaushik Basu

Suggested Citation

Mehra, Rajnish, The Equity Premium in India (August 2006). NBER Working Paper No. w12434. Available at SSRN: https://ssrn.com/abstract=923792

Rajnish Mehra (Contact Author)

Arizona State University (ASU) - W.P Carey School of Business, Department of Economics ( email )

Tempe, AZ 85287-3806
United States
480 965 6335 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
49
Abstract Views
655
PlumX Metrics