Swiss Market Index

Years	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005
SMI®	1383,1	1670,1	2107,0	2957,6	2628,8	3297,7	3942,2	6265,5	7160,7	7570,1	8135,4	6417,8	4 630,8	5487,8	5693,2	7583,9

 

 

 

June, 30, 1988 : 1500

Return on the market : [1'383,1. (1 +Rm)¹⁵ = 7'583.9] => R_m = 12.01 %

Risk free rate (Bond rate of Swiss Federal State - 10 years - June 2006) : 2,85%

Risk premium of the market : Return on the market - Risk Free Rate : 9,16 %

Note :

The market must be looked on a long term point of view. The Return on market depends on the period you choose.

Periods	Return
1990-2005	12.01%
1990-2000	19,38%
1996-2005	7.54 %
1999-2005	-0.03 %
2000-2005	-1.39 %

© Bernard Jaquier, Professor in Economics & Finance, Ecole Hôtelière de Lausanne, 2006