The easiest way to estimate the market risk premium is ___.
A: a consensus estimate
B: using the risk premium that is implied by discounting a forecast of future dividends
C: using the historical data
D: direct observation
A: a consensus estimate
B: using the risk premium that is implied by discounting a forecast of future dividends
C: using the historical data
D: direct observation
举一反三
- An analyst does research about cost of common equity. With respect to calculating the cost of equity using the bond yield plus risk premium approach, which of the following statements about the risk premium is least accurate（） A: The risk premium compensates for the additional risk of equity compared with debt. B: We often estimate the risk premium using historical spreads between bond yields and stock yields. C: In developed country markets, a typical risk premium added is in the range of 2 to 4 percent.
- (I) The risk premium widens as the default risk on corporate bonds increases. (II) The risk premium widens as corporate bonds become less liquid.
- This kind of additional risk is coverable_________ a premium of 0.2%.
- This kind of additional risk is coverable_________ a premium of 0.2%. A: at B: with C: for D: in
- This kind of additional risk is coverable_________ a premium of 0.2%. A: at B: with C: for D: in