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The equity risk premium puzzle originates from the observation that equity returns marginally exceed the risk-free rate to an extent that is consistentwith low levelsof

The equity risk premium puzzle originates from the observation that equity returns marginally exceed the risk-free rate to an extent that is consistentwith low levelsof risk aversion (on average). Over time, given the longer-term returns on equities relative to risk free assets, the equity risk premium has proven to be surprisingly low.

T or F and why, explain it

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