What Risk Premium Is "Normal"?

Topics:
Commercial Lending
Tags:
Bond,
Finance,
Financial Accounting,
First Quadrant,
Investment,
Stock,
Stock Buyback
Source:
First Quadrant

FREE Registration is required

Overview: In the current circumstance, in which stocks appear to have a near-zero or negative risk premium relative to government bonds, is abnormal in the extreme. Even if one percent is added to the risk premium, to allow for the impact of stock buybacks, today’s risk premium relative to the more relevant corporate bond alternatives is still negligible or negative. The article overviews the need and importance of managing a risk premium level and the minimum risk premium level necessary to be maintained in the stock buybacks.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 959KB | Date: Apr 2002 | Pages: 28

People who downloaded this item also downloaded

Download Video: nVidia Quadro FX570 Driver Version: A06 6.14.11.6955 (Windows)
White Paper An Introduction to Real Options
White Paper Why Do Asset Prices Not Follow Random Walks?
White Paper The Equity Risk Premium - Part One
White Paper The Buyback Catch

Top results from Commercial Lending

White Paper Does Bank Lending Affect Output? Evidence from the U.S. States
White Paper What Did the Credit Market Expect of Argentina Default? Evidence from Default Swap Data
White Paper New Evidence on the Interest Rate Effects of Budget Deficits and Debt
White Paper Consumption, Debt and Portfolio Choice: Testing the Effect of Bankruptcy Law
White Paper Small Business Loan Turndowns, Personal Wealth and Discrimination

» View all Commercial Lending listings

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement

Returning users: Log In Here!

Already registered on BNET, TechRepublic, or ZDNet? Simply log in.

Free Membership: Sign Up Now!

Sign up for a free membership today and get instant and unlimited access to one of the largest databases of white papers, webcasts, and casestudies anywhere. Your FREE membership allows you to:

  • Download an unlimited amount of content, including classic and current white papers, case studies, webcasts and more
  • Track content on your chosen topics of interest
  • Receive targeted email alerts when your favorite content is added
  • Save content for future reading
  • Receive our member newsletter

When you register to access this directory, you become a member of BNET. In addition, you allow us to share your information with companies that produce products or services featured in the library--so that such companies may contact you with information and offers regarding their products and services. This enables us to keep the library a free service. As a directory registrant, you will receive a complimentary subscription to the BNET member newsletter, The BNET Report. You can unsubscribe from this newsletter at any time. By clicking the Sign up button, you indicate that you agree to our Terms and Conditions and have read and understand our Privacy Policy (updated).