Mehra and Prescott (1985)showed that a long-term risk premium such as that found in the US,Canada,the UK and Australia:
A)exceeds 3% p.a.
B)does not exceed 3% p.a.
C)can be explained by standard models of risk and return.
D)cannot be explained by standard models of risk and return.

Question

Quizplus · Accepted Answer

The Answer of Mehra and Prescott (1985)showed that a long-term risk premium such as that found in the US,Canada,the UK and Australia:
A)exceeds 3% p.a.
B)does not exceed 3% p.a.
C)can be explained by standard models of risk and return.
D)cannot be explained by standard models of risk and return.

Mehra and Prescott (1985)showed That a Long-Term Risk Premium Such