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Assume That the Wilshire 5000 Currently Has a Dividend Yield

Question 68

Multiple Choice

Assume that the Wilshire 5000 currently has a dividend yield of 2% and that on average,the dividends of Wilshire 5000 firms have increased by about 7% per year.If the risk-free interest rate is 4%,then your estimate for the future market risk premium is:


A) 4%.
B) 7%.
C) 8%.
D) 5%.

Correct Answer:

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