There is an ongoing debate regarding whether the observed historical equity risk premium is too high to serve as a benchmark for forward-looking equity risk premium. To obtain estimates of forward-looking equity risk premium, a number of models have been proposed that link equity returns to the...

Recent theoretical literature suggests that the magnitude of the systematic risk premium for a multistage investment project is subject to various forces that may cause the premium to change across stages. To test this hypothesis, I investigate whether Capital Asset Pricing Model (CAPM) beta...