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    Exam 11: Introduction to Risk, Return, and the Opportunity Cost of Capital
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    If the Stock Market Return in 2020 Turns Out to Be
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If the Stock Market Return in 2020 Turns Out to Be

Question 45

Question 45

Essay

If the stock market return in 2020 turns out to be 30 percent, what will happen to our estimate of the "normal" risk premium? Does this make sense?

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If we use historical averages to compute...

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