Mehra, Rajnish. <br/><br/>
The Equity Premium in India / 
Rajnish Mehra. 
 - Cambridge, Mass.  National Bureau of Economic Research  2006. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w12434 .
 - Working Paper Series (National Bureau of Economic Research)  no. w12434. .
<br/><br/> August 2006. 
<br/><br/> In this article we examine the Equity Premium in the Indian context and review the related literature.  The equity premium is the returned earned by a well-diversified stock portfolio in excess of that earned by a risk free security such as a Treasury Bill. Consistent with U.S. experience we find that the Indian equity premium has been quite high in the post 1991 period, averaging 9.7% above the corresponding risk free security.  It is difficult to justify such a premium based on theoretical considerations.  The article is an entry prepared for the Oxford Companion to Economics in India edited by Kaushik Basu 
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