To estimate the expected return on equity investments:

Question

Quizplus · Accepted Answer

To estimate the expected return on equity investments, one needs to study stock market returns for many decades. It is not sufficient to look only at recent data on stock returns or expected returns on debt instruments. A course in financial economics may provide some useful knowledge, but studying historical stock market returns is essential for estimating the expected return on equity investments.

To Estimate the Expected Return on Equity Investments