Equity premium puzzle studies may be subject to survivorship bias because
A) the time period covered was not long enough.
B) an inappropriate index was used.
C) the indexes used did not exist for the whole period of the study.
D) both U.S. and foreign data were used.
E) only U.S. data was used.

Question

Quizplus · Accepted Answer

The equity premium puzzle studies may be subject to survivorship bias because they often rely solely on U.S. data, which may not be representative of global markets and could overstate returns due to the country's successful economic history.

Equity Premium Puzzle Studies May Be Subject to Survivorship Bias