Question: When we estimate the equity risk premium with recent data, we see that it is quite low at about 1%, suggesting that investment in
When we estimate the equity risk premium with recent data, we see that it is quite low at about 1%, suggesting that investment in the stock market does not look promising. it remains quite close to the long run average of about 4%. it is above typical estimates suggesting that it is a good time to jump into the stock market. getting a reliable figure is impossible.
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