Using Average Historical Data for Risk Premium Estimates: Arithmetic Mean, Geometric Mean, or Something Else?

Brian C. Becker, Ph.D is a senior economist with Economic Consulting Services Inc. and an adjunct Finance professor at The Johns Hopkins University in Washington, D.C. Dr. Becker received his Masters and Ph.D. degrees in Applied Economics from the Wharton School of Finance of the University of Pennsylvania, and his B A. in Applied Mathematics and Economics from The Johns Hopkins University.

Ian C. Gray recently joined Economic Consulting Services Inc. in 1998 as an Economist, after employment in research at the Securities and Exchange Commission. He received his B.S. with Highest Honors in Economics from the Georgia Institute of Technology in 1995. He received his MA. in Economics in 1997 and is currently a doctoral candidate from The Johns Hopkins University.