We started this session with a discussion of risk free rates, exploring why risk free rates vary across currencies and what to do about really low or negative risk free rates. The blog post below captures my thoughts on negative risk free rates:
http://aswathdamodaran.blogspot.com/2016/03/negative-interest-rates-unreal.html
If you want to see my updated perspective on risk free rates, try my data post on the issue from earlier this year:
https://aswathdamodaran.blogspot.com/2019/01/january-2019-data-update-2-message-from.html
We just started on the discussion of equity risk premiums but the contours of the discussion should be clear. Historical equity risk premiums are not only backward looking but are noisy (have high standard errors). You can the historical return data for the US on my website by going to
http://www.stern.nyu.edu/~adamodar/New_Home_Page/data.html
Click on current data, and look to the top of the table of downloadable data items.
Start of the class test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/riskfree.pdf
Slides: http://www.stern.nyu.edu/~adamodar/podcasts/valspr19/session4slides.pdf
Post Class Test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session3test.pdf
Post Class Test Solution: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session4soln.pdf

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