Chacko, George C., Peter A. Hecht, Vincent Dessain, and Anders Sjoman. "Deutsche Bank: Discussing the Equity Risk Premium." Harvard Business School Case 205-040 ...
The difference in return is referred to as the equity risk premium ... as companies grow. The retained earnings should have instead been distributed as dividends. The equity premium refers to ...
The managers construct the equity ... plus its premium. This detracts from performance in market rallies or when lower implied volatility suppresses premiums. In addition, the lower-risk stock ...
As highlighted by market analysts on November 14, the S&P 500 equity risk premium has significantly shrunk, reaching near-zero lows. This new level is the lowest since 2000 when the value went ...