What is the equity premium puzzle

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Reference no: EM132036579

1. Name two ways a firm can increase its book equity?

2. When the Federal Reserve did large-scale asset purchases (LSAPS or “QE”), what was it doing, and what was the monetary policy goal?

3. What is the equity premium puzzle? And what are two explanations that “resolve” the puzzle?

Reference no: EM132036579

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