IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Estimación del Premio por Riesgo en Chile

Listed author(s):
  • Francisca Lira
  • Claudia Sotz
Registered author(s):

    This study describes the different methodologies to measure the equity risk premium (ERP) and, in specific, the ERP for Chile between January 1993 and May 2010. The first one was estimate the historical difference in annual returns of stocks over bonds, which gave an ERP in the range of 2.8% and 6.7%, depending on the choice of the stock index and risk free security. On the other hand, and as an alternative to the first methodology, calculated the return on stocks based on current equity prices using a dividend discount model, which resulted in an ERP in a range of 4.9%> to 7.2%, depending on the type of risk free security considered. Finally, the authors added Chilean sovereign risk to the base premium for matured equity markets, obtaining an ERP between 3.7% and 7.6%.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 617.

    in new window

    Date of creation: Feb 2011
    Handle: RePEc:chb:bcchwp:617
    Contact details of provider: Postal:
    Casilla No967, Santiago

    Phone: (562) 670 2000
    Fax: (562) 698 4847
    Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. Mehra, Rajnish & Prescott, Edward C., 1985. "The equity premium: A puzzle," Journal of Monetary Economics, Elsevier, vol. 15(2), pages 145-161, March.
    2. Fernando Lefort & Eduardo Walker, 2002. "Cambios Estructurales e Integración. Discusión y Análisis del Mercado Accionario Chileno," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 39(116), pages 95-122.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:chb:bcchwp:617. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio Sepulveda)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.