f Professor Siegel is correct that stocks are less risky than bonds, then the risk premium on stock may be zero. Assuming that the risk-free interest rate is 3.3 percent, the growth rate of dividends is 2.8 percent and the current level of dividends is $32, use the dividend-discount model to compute the level of the S&P 500 that is warranted by the fundamentals. Instructions: Enter your response rounded to the nearest penny (two decimal places). The level of the S&P 500: $