dc.contributor.author | FitzGerald, Adrian | en |
dc.date.accessioned | 2007-08-14T14:41:27Z | |
dc.date.available | 2007-08-14T14:41:27Z | |
dc.date.issued | 1997 | |
dc.identifier.uri | http://hdl.handle.net/1842/1856 | |
dc.description.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. | en |
dc.format.extent | 86852 bytes | en |
dc.format.mimetype | application/pdf | en |
dc.language.iso | en | |
dc.publisher | Management School and Economics. The University of Edinburgh | en |
dc.relation.ispartofseries | CFMR | en |
dc.relation.ispartofseries | 97.06 | en |
dc.subject | Economics | en |
dc.title | Re-assessing the Equity Risk Premium | en |
dc.type | Working Paper | en |