Question: Proponents of the bubble view believe that when using historical averages to estimate an equity premium, Question 20 options: the equity premium will be higher

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

Question 20 options:

the equity premium will be higher after recent market surges (this answer was wrong)

the equity premium will be lower after recent market surges

the equity premium will be lower after recent market surges

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

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