Many investors use the capital asset pricing model (CAPM) as a way to estimate the potential return of a stock or other asset within the context of its intrinsic risk. Used primarily to analyze ...

Now that we've explored the risk premium models and their challenges, it's time to look at them with actual data. The first step is to find a reasonable range of expected equity returns.

The equity risk premium (ERP) for S&P 500 stocks has hit zero for the first time in over 22 years. Economist David Rosenberg warns that investors are now “paying to take on equity risk instead ...

The market risk premium has risen due to various top-down reasons. The risk-free rate's increase phases out much of the equity risk premium's gains. However, credit spreads are of concern.