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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 used your notes and passed ... highly recommended!

Lauren
Learning Outcome Statements
explain historical and forward-looking approaches to estimating an equity risk premium;
CFA® 2025 Level II Curriculum, Volume 3, Module 18.