Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)

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The Market Risk Premium Model Theory Study

Authors
Minrui Fan1, *
1Pennon school, Qingdao, 266104, China
*Corresponding author. Email: 1608241132@qq.com
Corresponding Author
Minrui Fan
Available Online 27 December 2022.
DOI
10.2991/978-94-6463-098-5_233How to use a DOI?
Keywords
Risk premium; equity instruments; valuation of financial assets; return on equity
Abstract

Stock market risk premiums not only influence corporate finance and investment management decisions but also serve as key inputs for numerous financial theory models. A deeper and more comprehensive knowledge of equity risk premiums has emerged as a result of developments in the theoretical research on equity premiums conducted in the West. One of the most active areas of research expands on the standard model's excessively robust assumptions to explore why the standard C-CAPM model does not adequately explain the reality premium. Through the use of several instances and financial data, the author of this essay investigates the feasibility of developing a risk premium prediction model based on risk predictability. The outcomes of several attempts demonstrate the significance of the risk premium prediction models built using a fair selection of indicators, as well as the satisfactory theoretical performance of the dynamic trading strategies developed using the models. Dynamic trading techniques have not, however, been tested in real markets; as a result, this needs to be acknowledged and addressed in the upcoming study.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
27 December 2022
ISBN
10.2991/978-94-6463-098-5_233
ISSN
2352-5428
DOI
10.2991/978-94-6463-098-5_233How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Minrui Fan
PY  - 2022
DA  - 2022/12/27
TI  - The Market Risk Premium Model Theory Study
BT  - Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)
PB  - Atlantis Press
SP  - 2080
EP  - 2085
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-098-5_233
DO  - 10.2991/978-94-6463-098-5_233
ID  - Fan2022
ER  -