The S&P 500 is at 1400. The expected dividends and cash flows next year on the stocks in the index are expected to be 5% of the index. If the expected growth rate in dividends and cash flows over the long term is expected to be 6% and the riskless rate is 5.5%, estimate the implied equity risk premium. 3. Assume you have estimated the historical risk pre- mium, based on-50 years of data, to be 6%. If the annual standard deviation in stock prices is 30%, estimate the standard error in the risk premium estimate