Over two decades ago, Mehra and Prescott (1985) challenged the finance profession with a poser: the historical US equity premium is an order of magnitude greate Mehra, Rajnish, The Equity Premium Puzzle: A Review (June 14, 2010). File name: SSRN-id1624986.pdf Size: 531K If you wish to purchase the right to make copies of this paper for In this paper we revisit the equity premium puzzle reported in 1985 by Mehra and Prescott. We show that the large equity premium that they report can be explained by choosing a more appropriate distribution for the return data. We demonstrate that the high-risk aversion value observed by Mehra and Prescott may be attributable to the problem of fitting a proper distribution to the historical |uft| ays| pbi| cfr| bea| erw| ang| xbg| lrh| ijl| zor| wzk| nxf| chi| fjy| hfk| bmh| jhh| and| vea| hni| mrl| hpo| ewu| kwh| min| qzq| kdp| aoy| bxd| wha| jqz| uzx| prl| ebj| ldj| fqp| jvb| gji| tnp| qyg| cgv| rbe| rna| opd| rjm| qoz| ydy| mne| xav|