La Prima de Riesgo del Mercado según 100 Libros (The Equity Premium in 100 Books)

ArXiv ID: ssrn-1166703 “View on arXiv”

Authors: Unknown

Abstract

Spanish Abstract: Las recomendaciones sobre la Prima de Riesgo del Mercado de los 100 libros sobre valoración y finanzas analizados (publicados entre 197

Keywords: Market risk premium, Valuation, Finance literature, Discount rates, Cost of capital

Complexity vs Empirical Score

• Math Complexity: 3.0/10
• Empirical Rigor: 1.5/10
• Quadrant: Philosophers
• Why: The paper is primarily a survey and conceptual analysis of risk premium definitions in finance textbooks, lacking complex mathematical derivations or advanced statistical modeling. Empirical rigor is low, as it relies on historical data and textbook recommendations without conducting original backtests, dataset analysis, or implementation-heavy experiments.

  flowchart TD
    Start["Research Goal<br/>(What is the appropriate Market Risk Premium<br/>for valuation in the Spanish market?)"] --> Methodology
    subgraph Methodology ["Key Methodology Steps"]
        M1["1. Selection: 100 Finance & Valuation Books<br/>(Published 1974-2014)"] --> M2["2. Analysis: Review of recommendations<br/>(Explicit vs. Implicit inputs)"]
    end
    Methodology --> Inputs
    subgraph Inputs ["Data & Inputs Used"]
        I1["Explicit Premiums<br/>(Survey averages)"]
        I2["Historical Data<br/>(Spanish & US Market Returns)"]
        I3["Implicit Estimates<br/>(Derived from models)"]
    end
    Inputs --> Computation
    subgraph Computation ["Computational Processes"]
        C1["Statistical Aggregation<br/>(Mean, Median, Distribution)"] --> C2["Comparison & Filter<br/>(Adequacy checks & Subjectivity removal)"]
    end
    Computation --> Outcomes
    subgraph Outcomes ["Key Findings & Outcomes"]
        O1["Recommendation:<br/>6.0% - 7.0% for Spain"]
        O2["Comparison:<br/>Higher than US (5.0%)<br/>(Reflecting country risk)"]
        O3["Conclusion:<br/>Avoid fixed numbers; use range based on risk profile"]
    end