According to many economists, the equity premium

Question

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The equity premium is the excess return that investors expect to receive from investing in stocks over a risk-free asset. Many economists believe that this premium is too large to be explained by risk considerations alone, and that other factors such as investor sentiment and behavioral biases may also play a role. Therefore, option D is the best choice because it suggests that the equity premium cannot be fully explained by risk considerations alone. Options A and B are incorrect because tax considerations and inflation fears are not the primary drivers of the equity premium. Option C is also incorrect because the equity premium has been shown to exist in empirical studies.

According to Many Economists, the Equity Premium