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KPMG Corporate Finance Advisory in The Netherlands calculates the equity risk premium each quarter. The chart below is taken from their most recent quarteny report
KPMG Corporate Finance Advisory in The Netherlands calculates the equity risk premium each quarter. The chart below is taken from their most recent quarteny report Other things equal, considering only the period depicted in the chart, indwiduals using the KPMG estimate of the equity risk premium in the CAPM will A. Have a higher valuation for an asset than someone using the RWJJ estimate. B. Have a lower valuation for an asset than someone using the RWJJ estimate. c. Sometimes have a higher valuation and sometimes have a lower valuation than someone using the RWJJ estimate because the KPMG equity risk premium fuctuates. D. End up with the same valuation as someone who uses the RWJJ estimate because the market is smart. E. None of the above. KPMG Corporate Finance Advisory in The Netherlands calculates the equity risk premium each quarter. The chart below is taken from their most recent quarteny report Other things equal, considering only the period depicted in the chart, indwiduals using the KPMG estimate of the equity risk premium in the CAPM will A. Have a higher valuation for an asset than someone using the RWJJ estimate. B. Have a lower valuation for an asset than someone using the RWJJ estimate. c. Sometimes have a higher valuation and sometimes have a lower valuation than someone using the RWJJ estimate because the KPMG equity risk premium fuctuates. D. End up with the same valuation as someone who uses the RWJJ estimate because the market is smart. E. None of the above
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