TY - JOUR T1 - The Equity Premium JF - The Journal of Portfolio Management SP - 104 LP - 111 DO - 10.3905/jpm.2004.319936 VL - 30 IS - 2 AU - Paul Bostock Y1 - 2004/01/31 UR - https://pm-research.com/content/30/2/104.abstract N2 - Investors require additional expected returns for bearing costs and risks. The equity premium is the compensation investors require for bearing the additional costs and risks of equity investment compared with government bonds (or cash). In this framework, the equity premium is constructed by assembling the premiums paid for each source of cost and risk. The results appeal to intuition and are closer to theoretical expectations than historical equity and bond return comparisons. ER -