What is a premium puzzle?

premium puzzle is a situation where the real return on stock problems is significantly higher than the return on government bonds. One of the confusing aspects of the puzzle is that some financial experts say that the puzzle does not really exist at all, while others see that it is a real phenomenon, but disagrees with the reasons for this type of activity. As such, it represents a premium puzzle that represents something like a continuing secrets that are unlikely in the near future.

For those who see a premium puzzle as a real secret, this process begins with defining what represents a stock bonus, which is significantly above the average. This begins with the understanding that the stock bonus is that its own capital returns fewer bond revenues generated in a specified period of time. The difference is usually expressed as a percentage. In the United States, this percentage is usually 6%, although some analysts believe that the number is too high.

Financial experts who deny the existence of a premium puzzle with their own capital do not deny that there is a period when the difference between revenues from shares and return on government bonds fluctuates, sometimes to an unusually high level. What they deny is that there is any real secret at all. Those who approach stock bonuses in this way consider activity to be normal responses to events that occur from time to time on the market. From this point of view, this activity can be expected and nothing that should be considered unusual.

Regardless of whether this fluctuation is a mystery or not, there are several theories about what can lead to situations that some decide to call themselves a stock premium puzzle. These include factors that affect the expected return to bonds or investments. This may include the perception of investors regarpotential impact of political problems, new technologies or demand withNeedors for certain key investment types. Others believe that one of the possible origin of the puzzle is the fact that the model of risk aversion that is currently considered a standard is wrong and should be modified to suit current data. There is currently no universal set of explanations why there may be an existential premium puzzle, although there is no universal agreement on whether a puzzle is a real phenomenon or simply an artificial construct derived by the arrangement of statistics.