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      "text": "Events influencing the market during the 1920s, 1930s, and 1940s are unlikely to repeat themselves.",
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      "text": "The counterargument is that a shorter, more recent time frame is more relevant to circumstances today and is, therefore, a better predictor of the future.",
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      "text": "Ibbotson Associates calculates risk premiums over several time periods, the longest of which is from 1926 to date.",
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      "text": "A long horizon is frequently used because a shorter period potentially underestimates the amount of change that can occur over a long future period and includes a smaller sample of unusual events.",
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      "text": "In recent years, information used to evaluate equity is better, investors are more sophisticated, and the market is more efficient and more carefully regulated. Investors should therefore require a smaller premium for investing in equities today than they did in the earlier part of the century.",
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      "text": "The time frame from 1926 to the present includes periods of high and low returns, volatile and steady markets, war and peace, inflation and deflation, and prosperity and depression.",
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