Equity Premia as Low as Three Percent? Evidence from Analysts' Earnings Forecasts for Domestic and International Stock Markets

J. Claus, James; K. Thomas, Jacob

doi:10.1111/0022-1082.00384

Public

Equity Premia as Low as Three Percent? Evidence from Analysts' Earnings Forecasts for Domestic and International Stock Markets

Published in The Journal of Finance • Oct 1, 2001

Authors:

James J. Claus

Jacob K. Thomas

Abstract

ABSTRACT The returns earned by U.S. equities since 1926 exceed estimates derived from theory, from other periods and markets, and from surveys of institutional investors. Rather than examine historic experience, we estimate the equity premium from the discount rate that equates market valuations wit...

Subject

Equity (law)

Economics

Earnings

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