Equity market risk premium uk 2016
By Pablo Fernandez and Andrada Bilan. You can add just this default spread to the mature market premium to arrive at the total equity risk premium. Recommended For You Powered by Sailthru. To estimate the long term country equity risk premium, I start with a default spread, which I obtain in one of two ways: Market risk premium describes the relationship between returns from an equity market portfolio and treasury bond yields. According to Dominic Konstam and team, writing in a note Friday, the rally is about the declining equity risk premium, which is simply the excess return the stock market provides over a risk-free rate like bond returns.