Which of the Following Is Not an Assumption of the Historical

question 11

Multiple Choice

Which of the following is not an assumption of the historical average stock market returns methods of estimating the market risk premium?

• A)Realised returns are equivalent to the returns expected by market participant for bearing risk in the future.
• B)The market risk premium is constant over time.
• C)The reward- to- risk ratio is always zero.
• D)All of the above are assumptions of this method.

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Definitions:

British North America

Term referring to the British colonies and territories in North America, including Canada, during the period from the 16th century until 1783, when Britain recognized American independence.

Immigrants

People who have moved to a new country with the intention of settling there, often in search of better living conditions, employment, or safety.

Liberties

The absence of constrictive control by governing bodies on an individual’s lifestyle, behaviors, or political perspectives in a societal setting.

Anglicization

The process of adopting English culture, language, or norms, often in the context of colonized societies integrating with or being influenced by English settlers or governance.