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Basic Question 0 of 10

What is the primary consideration when using the historical approach for estimating ERP?

A. Market sentiment
B. Current market conditions
C. Length of the historical period
D. Expected future cash flows

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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

compare methods used to estimate the required return on equity;

CFA® 2025 Level II Curriculum, Volume 2, Module 18.