Session 5: Riskfree Rates Closure and Equity Risk Premiums

We started this class by completing the last loose ends on risk free rates, before turning our attention to equity risk premiums and what they purport to measures. We looked at historical risk premiums and their limits and then extended the discussion to estimate equity risk premiums for countries without much historical data. To get from country risk premiums to company risk premiums, we emphasized the primacy of operating risk exposure rather than location and how revenues and production facilities can drive how we measure company risk exposure.
Start of the class test: http://www.stern.nyu.edu/~adamodar/pd...
Risk.pdf
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...