Which of the following statements about the expected equity risk premium is true?
A) It is occasionally negative.
B) There is no direct way to measure it.
C) It decreases as investor uncertainty increases.
D) It increases as the risk-free rate increases.

Question

Quizplus · Accepted Answer

The equity risk premium is the expected return on stocks over the risk-free rate, and it cannot be directly measured; it is typically estimated using historical data or models.

Which of the Following Statements About the Expected Equity Risk