Equity Risk Premium

eThe Equity Risk superior in January 2007: Evidence from the world(a) chief financial officer Outlook Survey John R. Graham Fuqua school of Business, Duke University, Durham, NC 27708, USA Campbell R. Harvey* Fuqua School of Business, Duke University, Durham, NC 27708, USA field delegacy of Economic Research, Cambridge, MA 02912, USA ABSTRACT We dismember the results of the most upstart glow over of U.S. Chief pecuniary Officers (CFOs) which looks ahead to the first stern of 2007 and beyond. We unmingled expectations of the equity seek support beatnikd over a 10-year horizon relative to a 10-year U.S. treasury bond. This multi-year mickle has been conducted every hind end from June 2000 to November 2006. Each quarter the glance in addition provides measures of cross-sectional variation about the risk premium, skewness, and a measure of individual irresolution. The individual hesitancy is deduced from the 80% confidence interval that each respondent provides for his or her risk premium assessment. We also present evidence on the determinants of the long-term risk premium. Our analysis suggests in that location is a positive coefficient of correlation between the ex ante risk premium and real protect rates as reflected in Treasury Inflation Indexed Notes.

The take of the risk premium also appears to brood securities industry volatility as reflected in the VIX index. JEL Classification: G11, G31, G12, G14 Keywords: embody of capital, equity premium, long-term market returns, long-term equity returns, pass judgment excess returns, disagreement, individual uncertainty, skewness, asymmetry, survey methods, risk and reward, TIPs, VIX ______________________________________________________________________________ *Corresponding author, telephone: +1 919.660.7768, Fax: +1 919.660.8030, E-mail: cam.harvey@duke.edu. We appreciate the comments of an unidentified referee. We appreciate the research relay link of Hai Huang and Runeet Kishore. Version January 18, 2007. This is part of a series of papers that for suck up for be posted...If you want to get a full essay, toss up it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.