The study looked at how euro area monetary policy affects equity risk premia. Changes in stock prices during easy money periods were due to economic factors, not investors wanting more risk compensation. Equity risk premia haven't dropped much since unconventional monetary policy started and are higher than before the financial crisis. The study found that monetary policy shocks didn't have a big impact on equity risk premia. When monetary policy was seen as bad news, it raised equity risk premia, but when it was seen as good news, it lowered them. Overall, these effects balanced out since unconventional monetary policy began.