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How do i compute for equity risk premium, and how do i compute for the data needed for that formula?


what are the data needed. What i know already is that:

equity risk premium = (x - safest investment percentage yield)
+ inflation rate

but in this formula, how do i compute for x?

this is for stock makret investing, tnx

For stocks it is obviously an estimate as past performance doesn't predict future performance. You could take for instance the average of the historical annual returns.

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