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:

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Clothing designed for formal social events, such as dinners, galas, and ceremonies, typically more sophisticated and elegant than regular attire.

Pedophilic Disorder

Disorder characterized by adult obtainment of sexual gratification by engaging in sexual activities with young children.

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Men who are sexually and romantically attracted to individuals of the opposite sex.

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Deriving pleasure from inflicting pain, suffering, or humiliation on others.