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Authors: Robert S Harris
Published by: Darden Business Publishing
Published in: 1992
Length: 5 pages
Data source: Published sources

Abstract

This technical note discusses the use of historical returns as a guide for estimating forward-looking required returns on equity. The note discusses uses of short- and long-term interest rates plus equity risk premia based on averages (either arithmetic or geometric) of past returns.

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Abstract

This technical note discusses the use of historical returns as a guide for estimating forward-looking required returns on equity. The note discusses uses of short- and long-term interest rates plus equity risk premia based on averages (either arithmetic or geometric) of past returns.

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