Calculating the Equity Risk Premium - Investopedia
https://www.investopedia.com/investing/calculating-equity-risk-premium/
Step 1: Estimate The Expected Total Return on StocksStep 2: Estimate The Expected ‘Risk-Free’ RateStep 3: Subtract The Estimated Bond Return from The Estimated Stock ReturnAll Sorts of AssumptionsThe Bottom LineEquity risk premium is calculated as the difference between the estimated real return on stocks and the estimated real return on safe bonds—that is, by subtracting the risk-free return from the expected asset return (the model makes a key assumption that current valuation multiples are roughly correct). The U.S. Treasury bill (T-bill) rate is most ...See more on investopedia.com Equity risk premium is calculated as the difference between the estimated real return on stocks and the estimated real return on safe bonds—that is, by subtracting the risk-free return from the expected asset return (the model makes a key assumption that current valuation multiples are roughly correct). The U.S. Treasury bill (T-bill) rate is most ...
Equity risk premium is calculated as the difference between the estimated real return on stocks and the estimated real return on safe bonds—that is, by subtracting the risk-free return from the expected asset return (the model makes a key assumption that current valuation multiples are roughly correct). The U.S. Treasury bill (T-bill) rate is most ...
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