S&P 500 average return over the last 5, 10, 50, and 100 years was higher than that.
Last 5 Years: ~12.5%
Last 10 Years: ~14.0%
Last 50 Years: ~11-12% (reflects performance since the mid-1970s)
Last 100 Years: ~10.4%
...unless there's considerable uncertainty about future payments. Happily for the sellers of dubious assets, the world never seems to run out of people who can't resist a deal that's too good to be true.