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.

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