Multiple Choice
Fama and French (2002) studied the equity premium puzzle by breaking their sample into subperiods and found that
A) the equity premium was largest throughout the entire 1872-1999 period.
B) the equity premium was largest during the 1872-1949 subperiod.
C) the equity premium was largest during the 1950-1999 subperiod.
D) the differences in equity premiums for the three time periods were statistically insignificant.
E) the constant-growth dividend-discount model never works.
Correct Answer:
Verified
Correct Answer:
Verified
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