CLC’s team, led by Alkis Anztoulidis, BBA, Athens University of Economics and Business, MBF, University of St.Gallen, mentored and supervised our students, Elli Gerontikos, Yiannos Georgantzis, Evgenios Iliadis,
Aris Zouganelis and Dimitris Karachontzidis to carry out a research project on the Equity Risk-Premium Puzzle.
The purpose of this study is to examine the equity premium puzzle through the lens of psychology and its influence on the field of finance, using elements from the extensive research on the “equity premium puzzle” first appeared in 1985, using historical data from the U.S. capital market, conducted by Mehra and Prescott (the latter was awarded the Nobel Prize in Economics in 2004 for his work on business cycles). This puzzle remains unresolved to this day and continues to be an important topic in finance, as it interests both academics, who study it for the purposes of research and theoretical completeness, and market practitioners, who frequently use the equity risk premium to make long-term return forecasts for investment portfolios.
