Given the importance of equity risk premium, it is surprising how haphazard the estimation of equity risk premiums remains in practice.
This paper by Aswath Damodaran at the New York University Stern School of Business examines a number of different approaches to determining the equity risk premium and why different approaches yield different values. It closes by looking at how to choose the “right” number to use in analysis.
The paper can be downloaded here
equity, equity risk premium, research
Singapore’s two largest asset owners, GIC and Temasek, see attractive opportunities in climate adaptation solutions – a relatively underfunded area compared to decarbonisation. The former has already made selective adaptation investments and said the opportunity set across public and private debt and equity could increase to $9 trillion by 2050.
Long‐horizon investors have an edge. This paper argues to take advantage of the long-run investors should institutionalise contrarian behaviour by adopting a rebalancing rule, and redefining the concept of risk away from just volatility.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
Insuring against tail risk is too costly and a drag on long-term performance, with AQR Capital Management research revealing investors should instead make changes to their portfolio construction and risk management policies to better protect against unexpectedly large losses.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
The International Monetary Fund has conducted a detailed analysis of the stability of the Chinese financial system. The stability of the financial system of the world’s second biggest economy has come under the spotlight as concerns about price bubbles in real estate markets, spiralling local government debt, and the sharp increase in off-balance sheet lending
In this challenging paper, Gordon Clark describes fiduciary duty as somewhat of a fantasy, because it looks to convention rather than forward to innovation in investment management.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
A new EDHEC-Risk Institute survey of 104 European institutional investment professionals analyses the current uses and views on equity and fixed-income indexes.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
It’s no surprise to behavioural finance expert Professor Lisa Kramer that financial market dips and crashes typically happen in autumn.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
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