Equity Risk Premium Formula: Simple Math, Big Impact

2 weeks ago 4

Rommie Analytics

equity risk premium formulaKey Highlights The equity risk premium pays investors more for taking higher risks in the stock market than in safe places like government bonds. You find it by checking the difference between the expected market return and the risk-free rate, usually using historical data. Tools such as the capital asset pricing model (CAPM) are good [...]
Read Entire Article