4. (3 points) Assume the true market risk premium is constant over time and that the CAPM holds. How should you choose the data sample when estimating the market risk premium if you have 100 years of data?

a. You should use all available data (100 years). b. If the market has gone up for the last 20 years, but was not performing so well previously, you want to use only the last 20 years of data. c. If the market has gone up for the last 20 years, but was not performing so well previously, you want to exclude the data from the last 20 years. d. You want to exclude years with extreme negative or extreme positive returns, since they are not representative of typical market returns. e. (b) and (d) f. (c) and (d) g. None of the above.

please show working and attentic reason of choosing any options?

4. (3 points) Assume the true market risk premium is constant over time and that the CAPM holds. How should you choose the data sample when estimating the market risk premium if you have 100 years of data? a. You should use all available data (100 years). b. If the market has gone up for the last 20 years, but was not performing so well previously, you want to use only the last 20 years of data. c. If the market has gone up for the last 20 years, but was not performing so well previously, you want to exclude the data from the last 20 years. d. You want to exclude years with extreme negative or extreme positive returns, since they are not representative of typical market returns. e. (b) and (d) f. (c) and (d) g. None of the above