Edinburgh Research Archive logo

Edinburgh Research Archive

University of Edinburgh homecrest
View Item 
  •   ERA Home
  • Business School
  • Business and Management Research Publications
  • View Item
  •   ERA Home
  • Business School
  • Business and Management Research Publications
  • View Item
  • Login
JavaScript is disabled for your browser. Some features of this site may not work without it.

Re-assessing the Equity Risk Premium

View/Open
CFMR_976.pdf (84.81Kb)
Date
1997
Author
FitzGerald, Adrian
Metadata
Show full item record
Abstract
Estimates of the historical equity risk premium in the UK are in the range 7 per cent to 9 per cent per annum. Until recently, portfolio investors and industrialists have been encouraged to use a premium of this order in making investment decisions. The purpose of this paper is to review the risk premium debate and to re-inforce the case for rejecting historical experience in formulating future investment plans. A simulation of historical investor expectations suggests that a disciplined appraisal would have identified an average risk premium of less than two per cent per annum. A forward-looking assessment of reasonable expectations suggests that a risk premium assumptions of around 2.5 per cent would be realistic at present.
URI
http://hdl.handle.net/1842/1856
Collections
  • Business and Management Research Publications

Library & University Collections HomeUniversity of Edinburgh Information Services Home
Privacy & Cookies | Takedown Policy | Accessibility | Contact
Privacy & Cookies
Takedown Policy
Accessibility
Contact
feed RSS Feeds

RSS Feed not available for this page

 

 

All of ERACommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsPublication TypeSponsorSupervisorsThis CollectionBy Issue DateAuthorsTitlesSubjectsPublication TypeSponsorSupervisors
LoginRegister

Library & University Collections HomeUniversity of Edinburgh Information Services Home
Privacy & Cookies | Takedown Policy | Accessibility | Contact
Privacy & Cookies
Takedown Policy
Accessibility
Contact
feed RSS Feeds

RSS Feed not available for this page