The Risk Pemium in the Korean Stock Market

The Risk Premium and Cost of Equity in the Korean Stock Market (KOSPI)

Risk premiumCost of equity
Monthly data basis (from the year of 2000)2.8%1.0725
Monthly data basis (from the year of 2011 to 2016)-2.0%1.0075
Daily data basis
(From January, 2011 to December, 2016)
Total-1.6%1.0109
Exclusion out of 1 standard deviation for KOSPI10.1%1.1306
Exclusion out of 2 standard deviation for KOSPI2.8%1.0563
Exclusion out of 3 standard deviation for KOSPI2.4%1.0525

This work is worth as reference only.