Market risk premium and risk free rate: a survey 2013. Abstract

Nº 2 / 2014 - abril/junio

Market risk premium and risk free rate: a survey 2013.

Pablo Fernández
IESE Business School
Javier Aguirreamalloa
IESE Business School
Luis Corres
IESE Business School

Abstract:

This paper contains the statistics of the Risk-Free Rate and of the Equity Premium or Market Risk Premium (MRP) used in
2013 for 51 countries. We got answers for 78 countries, but we only report the results for 51 countries with more than 5
answers.
Most previous surveys have been interested in the Expected MRP, but this survey asks about the Required MRP. The paper
also contains the references used to justify the MRP, comments from persons that do not use MRP, and comments from persons that do use MRP.

Keywords: equity premium; required equity premium; expect- ed equity premium; historical equity premium; risk-free rate; heterogeneous investors