R
r_v.s
Member
Would you please explain what it says, esp
This total return can also be expressed as GRY – inflation risk
premium (IRP) + equity risk premium (ERP).
IRP which applies to GRY’s on conventional bonds is less of an issue
for equities given the implicit inflation hedge. (i.e. total return on
equities = risk free real yield + expected inflation + ERP (where ERP
also covers any small IRP))
???
This total return can also be expressed as GRY – inflation risk
premium (IRP) + equity risk premium (ERP).
IRP which applies to GRY’s on conventional bonds is less of an issue
for equities given the implicit inflation hedge. (i.e. total return on
equities = risk free real yield + expected inflation + ERP (where ERP
also covers any small IRP))
???