SSRN: Market Risk Premium and Risk-Free Rate Survey

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The SSRN Market Risk Premium and Risk-Free Rate Survey, conducted annually by Professor Pablo Fernández and his research team at IESE Business School, gathers data through a global survey targeting finance and economics professionals. The survey aims to capture the Market Risk Premium (MRP) and Risk-Free Rate (RF) figures that practitioners use in their financial analyses and valuations.

1. Data Collection Methodology

• Survey Distribution: Each year, the research team sends a brief email questionnaire to a vast network of finance and economics professors, analysts, and company managers. For instance, in 2023, the survey was emailed to over 15,000 professionals, resulting in 1,717 responses.
• Respondent Criteria: The survey includes responses from individuals who actively engage in financial analysis and valuation, ensuring that the data reflects current professional practices.
• Data Reporting Threshold: To maintain statistical relevance, the survey reports results only for countries with a minimum of six responses. In 2023, data from 80 countries met this criterion.

2. Data Processing and Validation

• Outlier Management: Responses with extreme values are identified and excluded to prevent skewed results.
• Data Segmentation: The survey categorizes data by country, providing insights into regional differences in MRP and RF figures.
• Historical Comparisons: The survey includes links to previous years’ results, allowing for trend analysis over time.

Available from: SSRN.