Comments on: Mis-estimating the Equity Risk Premium https://twentythirdfloor.co.za/2010/09/27/mis-estimating-the-equity-risk-premium/ Perspectives Mon, 07 Feb 2011 23:01:33 +0000 hourly 1 https://wordpress.org/?v=6.9.1 By: Your ERP estimate is still too high || Twenty Third Floor https://twentythirdfloor.co.za/2010/09/27/mis-estimating-the-equity-risk-premium/comment-page-1/#comment-16465 Mon, 07 Feb 2011 23:01:33 +0000 http://twentythirdfloor.co.za/?p=660#comment-16465 […] I recently had a conversation with a colleague who had been told that “Credit Suisse recommended an Equity Risk Premium of 7%”.  I’m curious to know whether they truly view that as an appropriate ERP.  If your ERP is 7%, it’s still too high. […]

]]> By: Implied Pension Return Assumptions and the Equity Risk Premium || Twenty Third Floor https://twentythirdfloor.co.za/2010/09/27/mis-estimating-the-equity-risk-premium/comment-page-1/#comment-16127 Wed, 13 Oct 2010 23:36:05 +0000 http://twentythirdfloor.co.za/?p=660#comment-16127 […] It’s also interesting to work out what Equity Risk Premiums these valuation assumptions imply. FinanceClippings makes  some educated guesses at likely portfolio construction, and estimates assumed ERPs of nearly 8%. For reasons I’ve described before, an 8% ERP is madness. […]

]]> By: The Power of Misconceptions || Twenty Third Floor https://twentythirdfloor.co.za/2010/09/27/mis-estimating-the-equity-risk-premium/comment-page-1/#comment-16123 Tue, 12 Oct 2010 22:07:35 +0000 http://twentythirdfloor.co.za/?p=660#comment-16123 […] Estimating the ERP is hard, but the range of common flaws is astounding. […]

]]> By: Why you’re mis-estimating the Equity Risk Premium #1 » Twenty Third Floor https://twentythirdfloor.co.za/2010/09/27/mis-estimating-the-equity-risk-premium/comment-page-1/#comment-16063 Mon, 27 Sep 2010 12:30:48 +0000 http://twentythirdfloor.co.za/?p=660#comment-16063 […] Mis-estimating the Equity Risk Premium […]

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