If the stock market return next year turns out to be - 20 %, will our estimate

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If the stock market return next year turns out to be - 20 %, will our estimate of the "normal" risk premium increase or decrease? Does this make sense?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Jun 30, 2016 09:23 AM

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If the stock market return next year turns out to be - 20 %, will our estimate

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Given that a 20 return is well below the hist...View the full answer

Fundamentals of Corporate Finance

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