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dc.contributor.authorFitzGerald, Adrianen
dc.date.accessioned2007-08-14T14:41:27Z
dc.date.available2007-08-14T14:41:27Z
dc.date.issued1997
dc.identifier.urihttp://hdl.handle.net/1842/1856
dc.description.abstractEstimates 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.en
dc.format.extent86852 bytesen
dc.format.mimetypeapplication/pdfen
dc.language.isoen
dc.publisherManagement School and Economics. The University of Edinburghen
dc.relation.ispartofseriesCFMRen
dc.relation.ispartofseries97.06en
dc.subjectEconomicsen
dc.titleRe-assessing the Equity Risk Premiumen
dc.typeWorking Paperen


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