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This paper contains the statistics of a survey about the Risk-Free Rate RF and of the Market Risk Premium MRP used in for 41 countries. We got answers for 68 countries, but we only report the results for 41 countries with more than 25 answers.

Market Risk Premium & Risk-Free Rate Used For 41 Countries In

Most of the respondents use for US, Europe and UK a Risk-Free Rate RF higher than the yield of the year Government bonds. We sent a short email see exhibit 1 on the period March April 10, to about 22, email addresses of finance and economic professors, analysts and managers of companies obtained from previous correspondence, papers and webs of companies and universities.

What is the historical market risk premium? | Investopedia

By April 22, , we had received 2, emails. The remaining 2, emails had specific Risk Free Rates and MRPs used in for one or more countries.

Table 2 contains the statistics of the MRP used in for 41 countries. Table 3 contains the statistics of the Risk-Free Rate RF used in in the 41 countries and Table 4 contains the statistics of Km required return to equity: In this section, we compare the results of with the results of a similar survey collected in see http: Welch performed two surveys with finance professors in and , asking them what they thought the Expected MRP would be over the next 30 years.

Johnson et al report the results of a survey of finance professors in North America done in March Graham and Harvey indicate that U. CFOs reduced their average EEP from 4.

In the survey, they report an average EEP of 3. They show that average EEP changes through time.

Ilmanen argues that surveys tend to be optimistic: Table 4 of Fernandez et al a shows the evolution of the Market Risk Premium used for the USA in , , and according to previous surveys Fernandez et al, , a and b. Developed by ValueWalk Team. By VW Staff on May 5, 8: Share Tweet Post Flip.

Equity Premium expected equity premium heterogeneous expectations market risk premium required equity premium risk free rate. Send us your tips at tips at valuewalk. Latest News From ValueWalk Has the dual employment mandate not invited Mission Creep of the most nefarious sort?