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Investment Executive: Focus on Products  |  01 August 2014

Searching for ERP

One of the tenets of modern finance is that risk and return are inextricably related as investors demand a premium (or excess return) for risking their capital. In respect to stocks, this excess return is referred to as the “equity risk premium” (ERP) and is measured as the difference in return between that of a broad stock market index and of high-quality government debt, such as treasury bills. Read more >