Business homework help
Business homework help. Although the size of the equity premium that risk aversion in the dominating pre-reference in the marketplace (i.e. if all investors were either risk-natural or risk -seeking therewould be no possible risk premium), the size of the historical equity premium seems far greater than can be justified using reasonable assumptions about risk of stocks and the risk aversion of investors. Please briefly explain for the magnitude of the historical equity premium that have been provided by academics and practitioners.
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