Why is the Equity Risk Premium So High?

The Equity Risk Premium was thought to have been a representation of market's understanding of risk. However, it is remarkably high given in an age where the stability of national bonds are under question and where companies have larger capital reserves than some nations. Professor Chadha discusses this puzzle ahead of his upcoming lecture on the topic.

Jagjit Chadha

Professor Jagjit Chadha

Mercers’ School Memorial Professor of Business

Jagjit Chadha was the Mercers’ School Memorial Professor of Commerce at Gresham College from 2014-2018.

Find out more

Support Gresham

Gresham College has offered an outstanding education to the public free of charge for over 400 years. Today, Gresham plays an important role in fostering a love of learning and a greater understanding of ourselves and the world around us. Your donation will help to widen our reach and to broaden our audience, allowing more people to benefit from a high-quality education from some of the brightest minds.