Equity risk premia in 2023

The equity risk premium captures the price of risk in equity investment – it is the excess return for investing in stocks instead of risk free investments. Estimates from Aswath Damodaran suggests that the South African equity risk premium has risen by almost 4 percentage points since 2021 to around 9.5%, comparable to Greece and Brazil. Note that these are controversial estimates given how high they are and there are many alternative ways to measure equity premia, see here and here for  alternatives.

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