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Source: Pablo Fernández Professor of Corporate Finance. IESE Business School. 1. Historical equity premium (HEP): historical differential return of the stock market over treasuries. 2. Expected equity premium (EEP): expected differential return of the stock market over treasuries. 3. Required equity premium (REP): incremental return of a diversified portfolio (the market)
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This note was uploaded on 09/27/2011 for the course ECON 6000 taught by Professor Fayissa during the Spring '10 term at Middle Tennessee State University.
- Spring '10