Economy, asked by ayandas9931, 1 year ago

Can you explain the equity premium puzzle?

Answers

Answered by salman101

The equity premium puzzle (EPP) is a phenomenon that describes the anomalously higher historical real returns of stocks over government bonds. The equity premium, which is defined as equity returns minus bond returns, has been approximately 6.4% on average over a 100+ year period in the U.S.

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