Adjusting the market risk premium to reflect the global financial crisis'

A rejoinder

Steven Bishop*, Michael Fitzsimmons, Bob Officer

*Corresponding author for this work

Research output: Contribution to journalComment/opinion

Abstract

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.

Original languageEnglish
Pages (from-to)15-16
Number of pages2
JournalJASSA
Volume2
Issue number4
Publication statusPublished - 2011
Externally publishedYes

Keywords

  • Cost of equity
  • Global financial crisis
  • Market risk premium
  • Weighted average cost of capital (WACC)

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  • Cite this

    Bishop, S., Fitzsimmons, M., & Officer, B. (2011). Adjusting the market risk premium to reflect the global financial crisis': A rejoinder. JASSA, 2(4), 15-16.