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The equity risk premium puzzle means: (one good answer) The equity risk premium is too high to be explained by traditional theories in finance. This

The equity risk premium puzzle means: (one good answer)

  1. The equity risk premium is too high to be explained by traditional theories in finance.

  2. This equity risk premium is too low to be explained by traditional financial theories.

  3. The equity risk premium is sometimes positive, but sometimes negative.

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