This rejoinder addresses the comments by Martin Hall in his response to our paper. We do not see the matters raised in his response as leading to a ' fundamental (and presently insurmountable) mismatch' between a short-term view and a long-term view. We believe it is incorrect to assume that the MRP is constant over time and that the long term does not ref lect the series of short terms that it comprises.
- Cost of equity
- Global financial crisis
- Market risk premium
- Weighted average cost of capital (WACC)