Anyone with even the most cursory knowledge of investing will know about the "equity risk premium”. Stocks are riskier than bonds and other fixed-income investments and so must compensate investors by delivering over time a higher rate of return. If equities didn’t deliver this premium then few would bother owning them. So the theory goes.

China Debt Investing - An overlocked oppotunity

Anyone with even the most cursory knowledge of investing will know about the "equity risk premium”. Stocks are riskier than bonds and other fixed-income investments and so must compensate investors by delivering over time a higher rate of return. If equities didn’t deliver this premium then few would bother owning them. So the theory goes.

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