The article discusses how the equity risk premium, which is the price of risk in stock markets, is estimated. It looks at different factors that influence this premium, such as investor risk aversion and economic uncertainty. The traditional method of using historical returns to estimate the premium has limitations, especially in emerging markets. Other methods like surveys and implied estimates are also explored. The relationship between equity risk premiums and other market premiums, like bond spreads and real estate rates, is examined to generate expected premiums. Different approaches yield different values for the equity risk premium, and the article provides insights on how to choose the right one for analysis.