The current PE ratio for the ASX 200 is 20.2. This is much higher than it has been during much of the last three decades. While this would suggest that stocks are overvalued, which of the following could also explain this phenomenon?

a. The risk-free rate is at historical lows

b. The equity risk premium today is much higher than it has been checked historically

c. The ROE at Australian companies has increased in the last couple of years

d. The expected earnings growth for Australian companies is likely to be higher, as companies bounce back from recession lows

e. None of the above