PT  - JOURNAL ARTICLE
AU  - Paul Bostock
TI  - The Equity Premium
AID  - 10.3905/jpm.2004.319936
DP  - 2004 Jan 31
TA  - The Journal of Portfolio Management
PG  - 104--111
VI  - 30
IP  - 2
4099  - https://pm-research.com/content/30/2/104.short
4100  - https://pm-research.com/content/30/2/104.full
AB  - 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.