Sentences with phrase «average equity risk premium»

The resulting equity risk premium comes in at 3.8 per cent, well above the 10 - year average equity risk premium for the index of 2.7 per cent.

Put another way, if the average equity risk premium applied, the S&P / TSX's P / E would be at 25, and the index would be north of 16,000.

Not exact matches

4In fact, one book, Dow 36,000, which was published in 1999 shortly before the stock market peaked, argued that «fair value» for the Dow Jones Industrial Average should be 36,000 because the appropriate risk premium for the equity market versus Treasury bonds should be zero.

The equity risk premium will average (arithmetically) only 4 - 5 %, significantly less than derived in prior analyses.

In other words, if cash historically returned about 1 % a year, then an equity risk premium of +4 % would imply an average return from equities of 5 %.

Doing a very rough average, and considering that the NASDAQ was in a boom period for most of the study period, I am comfortable with a reduction in the US equity risk premium over bonds down to 1 - 2 % on average, and over cash to 3 - 4 % on average.

The chart [above] shows the weighted average of the twenty - nine models for the one - month - ahead equity risk premium, with the weights selected so that this single measure explains as much of the variability across models as possible (for the geeks: it is the first principal component).

The equity risk premium can be thought of as a very subtle equilibrium, where the efficient investor who makes a 3 % premium is the loss - leader to equity issuers, and the average investor more than makes up for this «expense» to the insiders.

If you are discounting the composite cash flows of a multinational company, the equity risk premium should be a weighted average of the equity risk premiums of the countries that the company operates in, with the weights based on revenues or operating assets.

The study shows that Indians are risk averse in general and they prefer low to medium risk investments such as bank FD, real estate, gold etc. over equity or equity - linked products.It was found that the most common frequency of premium payment is annual with an average premium sum of Rs. 13000 and that 72 % people buy the insurance products from their banks.