Realistic Returns for Investing in the Stock Market
November 29, 2021 - Equity Premium
Is the conventional way of estimating the equity risk premium based on total shareholder return (TSR, assuming reinvestment of all dividends into stocks) reasonable? In their November 2021 paper entitled “Stock Investors’ Returns are Exaggerated”, Jesse Fried, Paul Ma and Charles Wang examine the realism of TSR as a measure of aggregate U.S. equity investor… Keep Reading