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Basic Question 2 of 8
What is the primary consideration when using the historical approach for estimating ERP?
A. Market sentiment
B. Current market conditions
C. Length of the historical period
D. Expected future cash flows
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
explain historical and forward-looking approaches to estimating an equity risk premium;
CFA® 2025 Level II Curriculum, Volume 3, Module 18.