Week 5 Discussion - Right now is the market risk premium...

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Right now, is the market risk premium sufficient for you to invest in the stock market? The market risk premium is the difference between expected return on a portfolio and the risk free rate. This risk is the determined by the different returns from an equity market portfolio and Treasury bond yields. [Mar] The market risk premium can be anywhere from 3% to 7%. [Bri15] For me, with the 10 year market yield rate at 1.39 according to treasury.gov, I am very comfortable with investing in the stockmarket with proper diversification. How much do you think the stock market will return over and above the Treasury10-year bond rate?My optimism may be in play here. But, I would expect an average market risk premium over the next 10 years somewhere near 5%. With current 10 year rate being 1.39, I would assume a 3% difference in return in the stock market versus treasury market yield.As an investor, is that an important question to answer before you invest in the stock market?As an investor, the rate of return is an important factor in my investments. However, I am not adverse to

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