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Basic Question 8 of 8

The decision to use a particular index to represent the market portfolio will affect the estimation of:

I. equity risk premium.
II. beta estimate for a particular stock.

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

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

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