Which of the following is not an assumption of the historical average stock market returns methods of estimating the market risk premium?
A) Realised returns are equivalent to the returns expected by market participant for bearing risk in the future.
B) The market risk premium is constant over time.
C) The reward- to- risk ratio is always zero.
D) All of the above are assumptions of this method.
Correct Answer:
Verified
Q27: One of the major advantages of using
Q28: A typical statement of cash flows consists
Q29: How does the 'imputation' system of taxation
Q30: The cost of equity capital can be
Q31: When attempting to determine the appropriate cost
Q33: Given the role of the finance manager
Q34: Under the imputation tax system,what will be
Q35: A shareholder who receives a franking credit
Q36: In Australia,company profits are taxed using which
Q37: The advantage of the imputation tax system
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents