The full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details.

We show that smeared brane solutions, where a charged black p-brane is smeared uniformly over one of the transverse directions, can have a Gregory-Laflamme type dynamical instability in the smeared direction even when the solution is locally thermodynamically stable. These thus provide counterexamples to the Gubser-Mitra conjecture, which links local dynamical and thermodynamic stability. The existence of a dynamical instability is demonstrated by exploiting an ansatz due to Harmark and Obers, which relates charged solutions to neutral ones.

Recent research on the equity risk premium has questioned the ability of historical estimates of the risk premium to provide reliable estimates of the expected risk premium. We calculate the equity risk premium for a number of countries over longer horizons than has been attempted to date. We show that the realised US equity premium is consistent with the premia obtained elsewhere. Furthermore, using well over a century of data, we find that current estimates of the equity premia are close to those observed during the pre-1914 era. This is of particular relevance given the argument that the financial environment during that period bears a closer resemblance to today than the 1914-1945 period, and possibly also the 1945-1971 period. This points to a current equity risk premium that is considerably lower than consensus forecasts (Welch 2001).

No abstract