Sentences with phrase «historical equity premium»

Consequently, the historical equity premium was approximately 5 % per annum.

Focuses in its concluding chapters on the historical equity premium and on an estimate for and implications of the future equity premium.

Not exact matches

The current number of shares remaining available for grant under the 2003 Plan is expected to last until approximately the end of 2014, based on the recent historical rate of award grants under the 2003 Plan noted under «Specific Benefits» below, and taking into account the 2:1 premium share counting rule, discussed below, for certain equity awards.

We allow that short - term interest rates may be pegged well below historical norms for several more years, and we know that for every year that short - term interest rates are held at zero (rather than a historically normal level of 4 %), one can «justify» equity valuations about 4 % above historical norms — a premium that removes that same 4 % from prospective future stock returns.

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.

... formal asset valuation models (extrapolations of historical return data) provide the most (least) predictive estimates of the future equity risk premium.

For each strategy, he runs 10,000 Monte Carlo simulations of a 40 - year retirement based on historical annual distributions of 10 - year bond yield, equity premium, home appreciation, short - term interest rate and inflation rate.

Below is a chart of the historical S&P GSCI Energy TR index levels versus the equity risk premium as measured by the S&P 500 Energy Total Return monthly minus the S&P 500 Energy Corporate Bond Index Total Return monthly.

First, the historical equity risk premium was high and decades could pass before a big - enough crash, making it very costly to sit in cash.

We allow that short - term interest rates may be pegged well below historical norms for several more years, and we know that for every year that short - term interest rates are held at zero (rather than a historically normal level of 4 %), one can «justify» equity valuations about 4 % above historical norms — a premium that removes that same 4 % from prospective future stock returns.

In historical oil bottoms, the energy equity risk premium, that measures the difference between the S&P 500 Energy Sector and the S&P 500 Energy Corporate Bond Index, has switched from a discount to a premium.