Equity Risk Premium

eThe Equity Risk Premium in January 2007: Evidence from the world(a) chief financial officer Outlook Survey John R. Graham Fuqua School of Business, Duke University, Durham, NC 27708, the States Campbell R. Harvey* Fuqua School of Business, Duke University, Durham, NC 27708, USA field Bureau of Economic Research, Cambridge, MA 02912, USA ABSTRACT We analyze the results of the most upstart exit oer of U.S. Chief Financial Officers (CFOs) which looks ahead to the first groundwork of 2007 and beyond. We manifest expectations of the equity insecurity premium measured over a 10-year horizon relative to a 10-year U.S. Treasury bond. This multi-year regard has been conducted every quarter from June 2000 to November 2006. Each quarter the measure excessively provides measures of cross-sectional variableness about the risk premium, skewness, and a measure of individual irresolution. The individual uncertainty is deduced from the 80% confidence musical inter val that each respondent provides for his or her risk premium assessment. We in any case present evidence on the determinants of the long-term risk premium. Our abridgment suggests there is a positive correlativity between the ex ante risk premium and real cheer order as reflected in Treasury Inflation Indexed Notes.

The level of the risk premium also appears to track trade volatility as reflected in the VIX index. JEL Classification: G11, G31, G12, G14 Keywords: Cost of capital, equity premium, long-term market returns, long-term equity returns, expected excess returns, disagreement, individual uncer tainty, skewness, asymmetry, survey methods,! risk and reward, TIPs, VIX ______________________________________________________________________________ *Corresponding author, Telephone: +1 919.660.7768, Fax: +1 919.660.8030, E-mail: cam.harvey@duke.edu. We appreciate the comments of an anonymous referee. We appreciate the research hotshot of Hai Huang and Runeet Kishore. Version January 18, 2007. This is part of a series of papers that renounce for be posted...If you want to get a full essay, slant up it on our website: OrderCustomPaper.com

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