Caroline Cakebread
Some disappointed stock market investors have given up on the equity risk premium in the wake of 2008. However, Roger Ibbotson, Professor of Finance, Yale School of Management, insists it is alive and well. In fact, there are a host of new premiums investors should be using to boost returns and manage risk in their stock portfolios. Ibbotson gave the keynote address at the 2011 Investment Innovation Conference which was held in Bermuda last month. He explained how new premiums related to liquidity and value can significantly boost returns and decrease risk over time. Click on the image to watch the interview and hear what Ibbotson had to say on-site in Bermuda.