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Most financial economists believe that the historic risk premium of 8.3% measured back to 1926 is too high to use as a forecast of future
Most financial economists believe that the historic risk premium of 8.3% measured back to 1926 is too high to use as a forecast of future risk premiums and suggest using 7%. What factors cause them to believe this? Mark all that apply.
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Interest rates near zero will have to go up resulting in lower asset prices.
China's growth will slow ours
Demographics. Too many old people relative to young productive people.
Deflation
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