Question
The S&P 500 is at 1,400. The expected dividends and cash flows next year on the stocks in the index are expected to be 5%
The S&P 500 is at 1,400. 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.
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Mathematical Finance Core Theory Problems And Statistical Algorithms
Authors: Nikolai Dokuchaev
1st Edition
0415414482, 978-0415414487
