Thursday, October 20, 2005

Equity Risk Premium

It is not new, but we just covered it in class and I think many of you might be interested. It is a brief overview of the Equity Risk premium through time by Clark and Silva. Short version: Expect the equity risk premium to be lower moving forward.From the paper:"Expectations for the long-run equity risk premium play an important role in asset allocation decisions because the policy asset mix

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