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Basic Question 0 of 3
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 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
Learning Outcome Statements
compare methods used to estimate the required return on equity;
CFA® 2025 Level II Curriculum, Volume 2, Module 18.