Title: Equity market volatility and expected risk premium
Description: "This paper revisits the time-series relation between the conditional risk premium and variance of the equity market portfolio.  The main innovation is that we construct a measure of the ex ante equity market risk premium using corporate bond yield spread data.  This measure is forward-looking and does not rely critically on either realized equity returns or instrumental variables.  We find strong support for a positive risk-return tradeoff, and this result is not sensitive to a number of robustness checks, including alternative proxies of the conditional stock variance and controls for hedging demands"--Federal Reserve Bank of St. Louis web site.