Wednesday, 25 June 2014

Market Risk Premium Used in 88 Countries in 2014: A Survey with 8,228 Answers

By Pablo Fernandez, Pablo Linares and Isabel Fernández Acín

Abstract:      
This paper contains the statistics of the Equity Premium or Market Risk Premium (MRP) used in 2014 for 88 countries. We got answers for more countries, but we only report the results for 88 countries with more than 6 answers.

37% of the MRP used in 2014 decreased (vs. 2013) and 9% 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, comments from 30 persons that do not use MRP, and comments from 53 persons that do use MRP.