Aswath Damodaran – Session 7 (Undergraduate): Equity Risk Premiums (Implied) and Company
Published on Feb 17, 2016
After briefly reviewing the weaknesses of historical premiums, we computed an implied equity risk premium for the S&P 500, using the level of the index. We then moved on to country risk premiums, using the country default spreads that we estimated for countries as a starting point and then coming up with country risk premiums for individual countries. We closed by looking at how best to estimate company equity risk premiums.
Slides: http://www.stern.nyu.edu/~adamodar/po…
Post class test: http://www.stern.nyu.edu/~adamodar/pd…
Post class test solution: http://www.stern.nyu.edu/~adamodar/pd…
