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If, as a result of the disruption caused by the Covid-19 pandemic, the share market return in 2020 turns out to be -20%, explain what
If, as a result of the disruption caused by the Covid-19 pandemic, the share market return in 2020 turns out to be -20%, explain what will happen if we use an historical average to estimate the expected market risk premium next year. Discuss whether this makes sense and what should we do?
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