Session 7: Equity Risk Premiums & First steps on Betas

In this session, I began by looking at the flaws in historical equity risk premiums by presenting the alternative of implied equity risk premiums, a less noisy, more dynamic approach. I then built on the equity risk premium estimates for the US to get equity risk premiums for other countries, and for companies exposed to risk in those countries. I ended by presenting the standard approach to estimating betas, and the estimation choices that you have to make along the way.
Slides: https://www.stern.nyu.edu/~adamodar/p...
Post class test: https://www.stern.nyu.edu/~adamodar/p...
Post class test solution:  https://www.stern.nyu.edu/~adamodar/p...

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