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Equity Risk Premium Historical Data: 1976 to 2012

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This article examines Equity Risk Premium (ERP) historical data in the UK since the mid-1970s and compares it with the common assumption of a 6% ERP worldwide. It also considers how premiums are calculated, using arithmetic or geometric means, and also gives some thought to what is a risk-free asset. 

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Professional Accountants in Business (PAIB)