The U.S. stock market has just entered unfamiliar territory. The equity risk premium (ERP) for the S&P 500 — essentially the extra return investors expect for taking on stock market risk over safer ...

The equity risk premium (ERP), the extra return investors demand for holding equities over risk-free assets, is at its lowest level in years, and it's flashing yellow lights across institutional ...

Diversification has been called the only free lunch in investing because done properly it can increase the efficiency of a portfolio (provide higher risk-adjusted returns). When deciding on assets to ...

The S&P 500 risk premium -- the forward earnings yield minus the 10-year Treasury yield-- is now nearly zero. "Such dismal equity risk-reward prospects have only been seen once in the last quarter ...

Expected 10-year risk premiums across various asset classes are lower than historical premiums, according to data provided by PitchBook. The contraction has been most pronounced in private equity, ...

The risk premium for options is rising in assets from stocks to gold, even as implied volatility on benchmark indexes has been either steady or falling for most of this year. While that may seem ...

The economic literature has long attributed non-zero expected excess returns in currency markets to time-varying risk premiums demanded by risk-averse investors. This paper, building on Bacchetta and ...

Aswath Damodaran, the NYU professor whose valuation models are staples in corporate finance, has warned that country risk premiums are rising globally, driven in part by the downgrade of U.S.