Explain consensus among the chief authors in finance
Is there any consensus among the chief authors in finance concerning the market risk premium?
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In Fernández (2006) we come at this conclusion after analyzing over 100 books and financial articles. The given chart and table demonstrate this point:
Figure: Risk premium recommended in several books and papers
Here,
REP = required equity premium;
HEP = historical equity premium;
IEP = implied equity premium;
EEP = Expected equity premium
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Explain new methodology of standard market practice.
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