Question: The factor risk premiums cannot be known with certainty and in-fact probably change over time. Different analysts and researchers will assume different values for them,

The factor risk premiums cannot be known with certainty and in-fact probably change over time. Different analysts and researchers will assume different values for them, but they are often estimated as being the average realized risk premiums over a long period of time in the past. We will do that here with the data we have from July 1926 to the present

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