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do you know what the "equity premium puzzle" is?

An phenomenon that describes the anomalously higher historical real returns of stocks over government bonds. The equity premium, which is defined as equity returns less bond returns, has been about 6% on average for the past century. It is supposed to reflect the relative risk of stocks compared to "risk-free" government bonds, but the puzzle arises because this unexpectedly large percentage implies a suspiciously high level of risk aversion among investors. The equity premium puzzle is a mystery to financial academics. According to some academics, the difference is too large to reflect a "proper" level of compensation that would occur as a result of investor risk aversion; therefore, the premium should actually be much lower than the historic average of 6%. More recent extensions to the puzzle attempt to offer a different rationale for explaining the EPP, such as investor prospects and macroeconomic influences. No matter the explanation, the fact remains that investors are being rewarded very well for holding equity compared to government bonds. Tags: glossary, glossary

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Which online fx platform has got fastest connection?

Definitely "Easy Forex". Members often praise to us that they're pleased with the login process to the site's server. You will encounter non of the normal login interruptions you usually encounter with big servers, it is very simple to activate the environment, and the connection to the server is completely fast. Tags: technical, download

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