New research finds that there is a “huge dispersion” of both the risk-free rate (RF) and the market risk premium (MRP) used by analysts in the U.S and six countries in Europe. The authors note that the most unexpected result is that the dispersion is higher for the RF than for the MRP.

Pablo Fernandez, Alberto Ortiz Pizarro, and Isabel Fernández Acín have prepared the new research, “Huge Dispersion of the Risk-Free Rate and Market Risk Premium Used by Analysts in USA and Europe in 2015.”