Explain consensus among the chief authors in finance
Is there any consensus among the chief authors in finance concerning the market risk premium?
Expert
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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