Market Risk Premium: a survey 2016 - Abstract Nº:3 / 2016

Market Risk Premium: a survey 2016

Abstract:

This paper contains the statistics of the Equity Premium or Market Risk Premium (MRP) used in 2016 for 71 countries. We got answers for more countries, but we only report the results for 71 countries with more than 8 answers. 54% of the MRP used in 2016 decreased (vs. 2015) and 38% increased. Most previous surveys have been interested in the Expected MRP, but this survey asks about the Required MRP. The paper also contains the references used to justify the MRP, and comments from 46 persons.

Keywords: equity premium; required equity premium; ex- pected equity premium; historical equity premium.