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Session 5: Closure on Riskfree Rates and Equity Risk Premiums
Description
n the session today, we started by doing a brief test on equity risk premiums. We then completed our discussion of risk free rates, and how the power of central banks comes from the perception that they have power, before embarking on an assessment of historical equity risk premiums, and why they are not good predictors of future equity risk premiums, before embarking on a discussion of country risk and how to deal with it, and measure it. If you are still confused about the different approaches to computing country risk premium, hang in there!
Start of the class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/risktest.pdf
Slides: https://nyu.box.com/s/x5y00f0vm8627z4ymrvepd9wymonbnlw
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session5atest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session5
asoln.pdf
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