Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. why is s&p 500 a good proxy for the implied eq

Why is S&P 500 a good proxy for the implied equity risk premium (ERP) estimation?

80.2K

Verified Solution

Question

Finance

Why is S&P 500 a good proxy for the implied equity riskpremium (ERP) estimation?

Answer & Explanation Solved by verified expert
3.8 Ratings (720 Votes)
The equity risk premium ca be calculated using the formula ERM Risk free rate For example Between a certain period of time the SP 500 exhibited a 15 compounding annual rate of return while the    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Why is S&P 500 a good proxy for the implied equity riskpremium (ERP) estimation?

Other questions asked by students

Q

Which of the following entities might file a form 1065? Select one: a. Partnership. b. LLC. c. S corporation. d....

Finance
Q

A bag contains four quarters, one nickel, one dime, and five pennies. We reach with our...

Statistics
Q

Calculate the activity at 25 degrees Celsius of NACl(s) at 1, 10, 100, and 1000 bar....

Chemistry
Q

The owner of a sushi restaurant looked over some recent orders He noted how many...

Geometry
Q

Solve and check the linear equation.x/3=5+ x-35/5What is the solution? Select the correct choice below...

Basic Math
Q

5 Sixty individuals are randomly selected from a large population Find the right endpoint of...

Statistics
Q

Select all equations with unique solution 5 2 3 6 b 8 0 0 Axb...

Calculus
Q

Note 2 ALLY policy in Canvas Home pag D Question 1 IMM

Calculus
Q

Testing the diagonals to determine the shape:Match each operation with the correct conclusion we can...

Algebra
Q

Select which standard of comparison best describes each of the following examples. (Answer...

Accounting
Q

I need help finishing this assignment. I'm not too sure on what to do. ...

Accounting
Q

The credit for work for a resident of Puerto Rico in which form can it...

Accounting