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Business, 28.06.2019 18:20 powellmj9216
If professor siegel is correct that stocks are less risky than bonds, then the risk premium on stock may be zero. assuming that the risk-free interest rate is 3.3 percent, the growth rate of dividends is 2.8 percent and the current level of dividends is $32, use the dividend-discount model to compute the level of the s& p 500 that is warranted by the fundamentals.
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