Market Risk Premium and Risk-Free Rate. Survey 2021 Abstract

Market Risk Premium and Risk-Free Rate. Survey 2021

Abstract:

This paper contains the statistics of a survey about the Risk- Free Rate (RF) and the Market Risk Premium (MRP) used in 2021 for 88 countries. We got answers for 92 countries, but we only report the results for 88 countries with more than 6 answers.

Many respondents use for European countries a RF higher than the yield of the 10-year Government bonds. The coefficient of variation (standard deviation / average) of RF
is higher than the coefficient of variation of MRP for the Euro countries.

The paper also contains the links to previous years surveys, from 2008 to 2020.

Keywords: equity premium; required equity premium; coronavirus; expected equity premium; risk-free rate.