Proponents of the bubble view believe that when using, Ask an Expert

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Proponents of the bubble view believe that when using historical averages to estimate an equity premium:

A. the equity premium will be lower after recent market surges

B. The average should be based on the last 10-15 years of historical data only since earlier data is no longer descriptive of current conditions e.g. bubbles

C. The equity premium will be higher after recent market surges

D. Average should be calculated using data from the earliest recorded point in time in order to ensure that any temporary bubbles are smoothed out.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92088120

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