In Estimating the Future Equity Risk Premium,it Is Important to Include

question 69

Multiple Choice

In estimating the future equity risk premium,it is important to include assumptions about the:

• A)historical distribution of returns on derivative securities only.
• B)future risk environment only.
• C)amount of risk aversion of future investors only.
• D)historical distribution of returns on derivative securities and the future risk environment.
• E)future risk environment and the amount of risk aversion of future investors.

---

Definitions:

Finalizing a Sale

The process of completing a transaction wherein the buyer receives the product or service and the seller receives the payment.

Sales Process

A series of steps undertaken by a sales team to convert potential leads into paying customers, typically including stages such as prospecting, presentation, and closing.

Ultimate Consumer

The final buyer who purchases products or services for personal use and not for manufacturing or resale.