Risk premium A risk premium is the excess of the return on investment over the risk-free return rate. It may consider as a type of compensation to an investor for bearing the risk of the given endowment over the risk-free asset. The liquidity risk prem...
The risk premium is ( ) A. the interest rate on municipal bonds minus the interest rate on treasury bonds. B. the interest rate on treasury bonds minus the interest rate on default-free bonds C. the interest rate on corporate bonds minus the interest rate on treasury bonds. D. the ...
A common stock pays an annual dividend per share of $2.20. The risk-free rate is 7% and the risk premium for this stock is 3%. If the annual dividend is expected to remain at $2.20, what i...
risk premium指的是风险溢价，有风险才会有这个50bp的溢价。由于未来的利率是不确定的，有可能是12%...
Public Investment and the Risk Premium for Equity Analysis of the equity premium puzzle has focused on private-sector capital markets. However, the existence of an anomalous equity premium raises important... S Grant,J Quiggin - 《Economica》 被引量: 77发表: 2003年 加载更多研究...
e. spreading an investment across many diverse assets will eliminate some of the risk. SYSTEMATIC RISK PRINCIPLE b 6. The ___ tells us that the expected return on a risky asset depends only on that asset’s nondiversifiable risk. a. Efficient Markets Hypothesis (EMH b. systematic risk princ...
Let's say the risk-free rate is 3% and the expected equity premium is 4%. We therefore expect equity returns of 7%. Now say we earn the risk-free rate entirely in bond coupons taxed at anincome tax rateof 35%. Equities may be deferred entirely into acapital gainsrate of 15% (no d...
39) If in an efficient market all prices are correct and reflect market fundamentals, which of the following is a false statement?39) ___ A) A stock that has done poorly in the past is more likely to do well in the future. B) One investment is as good as any other because the se...
The equity risk premium arises from the link between equities as an asset, and corporate profitability and growth. In this paper, we review the concept and measurement of the equity risk premium against a background of recent practitioner debate concerning the suitability of equities for long-term...
The Credit Risk Premium: Should Investors Overweight Credit, When, and By How Much?An abstract of the article "The Credit Risk Premium: Should Investors Overweight Credit, When, and By How Much?," by Bac Van Luu and Peiyi Yu is presented....