Market efficiency, asset returns, and the size of the risk premium in global equity markets
β Scribed by Ravi Bansal; Christian Lundblad
- Book ID
- 108432636
- Publisher
- Elsevier Science
- Year
- 2002
- Tongue
- English
- Weight
- 424 KB
- Volume
- 109
- Category
- Article
- ISSN
- 0304-4076
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This paper develops a method to estimate the equity risk premium. The method exploits the Earn Back Period (EBP) formula presented by Luoma and Ruuhela (2001), which is a generalization of the P/E ratio. The EBP has a clear theoretical interpretation and can be used to compare stocks with different
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