How do you calculate the Market (Equity) Risk Premium for a given market based on historical data?

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By multiplying the company's Beta by the risk-free rate

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By adding the risk-free rate to the average return on the stock index

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By calculating the difference between the average returns on a stock index and the average returns on a risk-free security during the same period

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By dividing the standard deviation of the market by the risk-free rate

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