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Basic Question 1 of 8

What is the primary focus of the historical approach to estimating the equity risk premium (ERP)?

A. Future market expectations
B. Current stock prices
C. Past market data
D. Expected cash flows

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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

compare methods used to estimate the required return on equity;

CFA® 2026 Level II Curriculum, Volume 2, Module 18.