Which one of the following options is not an input used to estimate the equity risk premium based on the Gordon
growth model?

Question

Which  one  of the following options is  not  an input used to estimate the equity risk premium based on the Gordon
growth model?

Answer

Dividend yield on the market index.

Answer

Expected growth in the market index’s P/E ratio.

Answer

Current long-term government bond yield.

Crowdly