Download This PaperMarket Risk Premium and Risk-Free Rate Used for 69 Countries in 2019: A Survey
15 Pages Posted: 18 Apr 2019 Last revised: 26 May 2019
Date Written: March 23, 2019
Abstract
This paper contains the statistics of a survey about the Risk-Free Rate (RF) and the Market Risk Premium (MRP) used in 2019 for 69 countries. We got answers for 84 countries, but we only report the results for 69 countries with more than 8 answers.
Due to “Quantitative Easing”, many respondents use for European countries a RF higher than the yield of the 10-year Government bonds. The coefficient of variation (standard deviation/average) of RF is, on average, 2.75 times higher than the CV of MRP for 24 European countries.
For the second time of this survey, 9 respondents provided — without being asked for — a different MRP for Spain and Catalonia (on average, 6.4% for Spain and 11.5% for Catalonia).
Keywords: equity premium; required equity premium; expected equity premium; risk-free rate; heterogeneous expectations
JEL Classification: G12, G31, M21
Suggested Citation: Suggested Citation
Pablo Fernandez (Contact Author)
IESE Business School ( email )
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