Vendor Image

Required Returns, the Market Risk Premiu...

Harris, Robert S.

Case

Required Returns, the Market Risk Premium, and Historical Returns

Harris, Robert S.

F-1022 | Published September 3, 1992 | 5 pages Case

Collection: Darden School of Business

Product Details

This technical note discusses the use of historical returns as a guide for estimating forward-looking required returns on equity. The note discusses uses of short- and long-term interest rates plus equity risk premia based on averages (either arithmetic or geometric) of past returns.

0