Sentences with phrase «equity risk premium above»

Let's say you believe there should be a 4 % equity risk premium above bond yields — so these days that might be 6 % or 7 % — and returns end up being above that expectation.

Not exact matches

Specifically, analysts argue that the «equity risk premium» — the expected return of stocks over and above that of Treasury bonds — is actually quite satisfactory at present.

The equity risk premium is the higher return an investor receives, above the so - called riskless rate.

Currently, in the Euro Zone ex UK, the equity risk premium is already above levels seen in the European debt crisis in 2011 and closing in on the 2009 highs of close to 900 basis points.

I was researching the subject and reading Strategic Allocation to Premiums in the Equity Market by David Blitz which concludes that an entire porfolio of smart beta can produce a premium above the market, and better risk adjusted returns than a single factor.

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 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.