Long-run Asset Returns

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openAccess

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Journal Title

Journal ISSN

Volume Title

A2 Katsausartikkeli tieteellisessä aikakauslehdessä

Date

2024-11-01

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Mcode

Degree programme

Language

en

Pages

24

Series

Annual Review of Financial Economics, Volume 16, issue 1, pp. 435-458

Abstract

The literature on long-run asset returns has continued to grow steadily, particularly since the start of the new millennium. We survey this expanding body of evidence on historical return premia across the major asset classes – stocks, bonds, and real assets – over the very long-run. In addition, we discuss the benefits and pitfalls of these long-run datasets and make suggestions on best practice in compiling and using such data. We report the magnitude of these risk premia over the current and previous two centuries, and we compare estimates from alternative data compilers. We conclude by proposing some promising directions for future research.

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Keywords

asset pricing, bonds, commodities, historical returns, investment management, real estate, risk premium, stock market index, stocks

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Citation

Chambers, D, Dimson, E, Ilmanen, A & Rintamäki, P 2024, ' Long-run Asset Returns ', Annual Review of Financial Economics, vol. 16, no. 1, pp. 435-458 . https://doi.org/10.1146/annurev-financial-082123-105515