Fama and French (2002) studied the equity premium puzzle by breaking their sample into subperiods and found that
A) the equity premium was largest throughout the entire 1872-1999 period.
B) the equity premium was largest during the 1872-1949 subperiod.
C) the equity premium was largest during the 1950-1999 subperiod.
D) the differences in equity premiums for the three time periods were statistically insignificant.
E) the constant-growth dividend-discount model never works.

Question

Quizplus · Accepted Answer

The Answer of Fama and French (2002) studied the equity premium puzzle by breaking their sample into subperiods and found that
A) the equity premium was largest throughout the entire 1872-1999 period.
B) the equity premium was largest during the 1872-1949 subperiod.
C) the equity premium was largest during the 1950-1999 subperiod.
D) the differences in equity premiums for the three time periods were statistically insignificant.
E) the constant-growth dividend-discount model never works.

Fama and French (2002) Studied the Equity Premium Puzzle by Breaking