What Does Consumer Confidence Imply for the Equity Risk Premium?
Posted on October 12, 2012 at 12:50 PM EDT
Estimating the equity risk premium—the return on stocks over a "safe" asset such as the 10-year Treasury or 3-month T-bill—is at the heart of investment research and portfolio analysis. "It is the 'number' that drives everything we do," writes Aswath Damodaran, a finance professor at the Stern School of Business at NYU. [More...]