If Professor Siegel is correct that stocks are less risky than bonds, then the risk premium on stock should be zero. Assuming that the risk-free interest rate is 31⁄2 percent, the growth rate of dividends is 2 percent, and the current level of dividends is $30, use the dividend-discount model to compute the level of the S&P 500 that is warranted by the fundamentals. Compare the result to the current S&P 500 level, and comment on it.