Review Detail

I couldnt see where to ask questions as I have in the past. I define the market risk premium the way I learned it in CFA. The difference between the return on the market and the 3 mo T Bill. Averaged over a long period of time you get about 6%. Its really a hurdle rate. The problem with the earnings yield is it doesnt take into consideration EPS growth. And the E/P became an institutional indicator during Greenspans time but has lost its forecasting ability.