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Please help me to solve this question especially the second questionwhy the observed high equity premium cannot be explained by such a model. Using a

Please help me to solve this question especially the second questionwhy the observed high equity premium cannot be explained by such a model.

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Using a standard model of asset pricing (either two-period or multi-period) based on the principles of consumption CAPM, derive an expression for the equity premium and explain why the observed high equity premium cannot be reconciled with such a model

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