You can replace “best guess at a stock’s future price” with “best guess at a stock’s future price, time-discounted using a risk free rate” and the essential question still remains. This is Wikipedia’s framing of the equity premium puzzle.
That is very interesting! That does sound weird.
You can replace “best guess at a stock’s future price” with “best guess at a stock’s future price, time-discounted using a risk free rate” and the essential question still remains. This is Wikipedia’s framing of the equity premium puzzle.
That is very interesting! That does sound weird.