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Basic Question 4 of 8

What is a common factor considered in both historical and forward-looking approaches to estimating ERP?

A. Market sentiment
B. Current risk-free rate
C. Expected cash flows
D. Economic conditions

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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

compare methods used to estimate the required return on equity;

CFA® 2025 Level II Curriculum, Volume 2, Module 18.