A number of prominent observers expect the equity risk premium in the future to be:
A)considerably lower than that of the past.
B)considerably higher than that of the past.
C)very similar to the historical average.
D)very similar to the recent value.

Question

Quizplus · Accepted Answer

Many factors such as low interest rates, increased competition, and global economic trends suggest that the equity risk premium will be lower in the future than it has been historically.

A Number of Prominent Observers Expect the Equity Risk Premium