Sentences with phrase «future equity risk premium»
... formal asset valuation models (extrapolations of historical return data) provide the most (least) predictive estimates of the future equity risk premium.
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Chapter 13 — The Prospective Risk Premium estimates the future equity risk premium for the U.S., U.K. and world markets.
Estimates of the future equity risk premium should start with historical results and then adjust for expected shifts in stock market variability and non-repeatability of unusual past cash flows.
Not exact matches
If the equity premium puzzle is real and not just luck, there is little reason to think that this generation or future generations will require less expected return for holding nondiversifiable equity risk.
Does shorting the iPath S&P 500 VIX Short - Term Futures ETN (VXX) with crash protection (to capture the equity volatility risk premium safely) work?
«Equity Market and Treasuries Variance Risk Premiums as Return Predictors» reports a finding, among others, that the variance risk premium for 10 - year U.S. Treasury notes (T - note) predicts near - term returns for those notes (as manifested via futurRisk Premiums as Return Predictors» reports a finding, among others, that the variance risk premium for 10 - year U.S. Treasury notes (T - note) predicts near - term returns for those notes (as manifested via futurrisk premium for 10 - year U.S. Treasury notes (T - note) predicts near - term returns for those notes (as manifested via futures).
As a forward - looking quantity, the equity - risk premium is theoretical and can not be known precisely, since no one knows how a particular stock, a basket of stocks, or the stock market as a whole will perform in the future.
In response to «Shorting VXX with Crash Protection», which investigates shorting iPath S&P 500 VIX Short - Term Futures (VXX) with crash protection to capture the equity volatility risk premium safely, a subscriber asked about instead using a long position in ProShares Short VIX Short - Term Futures (SVXY).
Does shorting the iPath S&P 500 VIX Short - Term Futures ETN (VXX) with crash protection (to capture the equity volatility risk premium safely) work?
Equity risk premium bears argue that so much of these past stock returns have been driven by increases in earnings and dividend multiples, it would be nearly impossible for a further expansion in these to contribute to future returns.
«The equity risk premium is the expected future return of stocks minus the risk - free rate over some investment horizon.