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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 passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

explain historical and forward-looking approaches to estimating an equity risk premium;

CFA® 2025 Level II Curriculum, Volume 3, Module 18.