Question: Standard Deviation in Bovespa (Equity) = 42% Standard Deviation in Brazil government bond = 19% Default spread for Brazil (Ba2 in January 2021)= 3.2% Mature

Standard Deviation in Bovespa (Equity) = 42% Standard Deviation in Brazil government bond = 19% Default spread for Brazil (Ba2 in January 2021)= 3.2% Mature Market Premium (S&P500 USA) = 5.51 Using bond volatility approach, what is total ERP (Equity Risk Premium) for Brazil

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