Evidence suggests Equity Risk Premium lower than conventional wisdom thinks: Part 1 of 2

Business Valuation UpdateVol. 2 No. 7
Special Reports
July 1996
Shannon P. Pratt, CFA, ARM, ABAR, FASA, MCBA, CM&AA
cost of capital, capital asset pricing model (CAPM), equity risk premium (ERP)

Summary

On June 5 and 6 Ibbotson Associates held their first-ever Cost of Capital and Equity Risk Premium Conference (as distinguished from their Cost of Capital Workshop, described in the sidebar on page 4).