If the Stock Market Return in 2008 Turns Out to Be

question 89

Essay

If the stock market return in 2008 turns out to be 30 percent,what will happen to our estimate of the "normal" risk premium? Does this make sense?

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Definitions:

Petty Cash Fund

A small amount of cash kept on hand by a business for making immediate payments for small, incidental expenses.

Cash Short

A situation where the actual cash differs from the expected amount during a financial transaction or at the close of a business day.

Journal Entry

A record in accounting that represents a transaction and its effects on accounts in a double-entry bookkeeping system.

NSF Check

A check that has been returned by the bank because the account on which it was drawn did not have sufficient funds.