isn’t counting income growth component and EPS growth component essentially double counting the impact of earnings growth (AND PE growth is in there)?
the last term before RFR; I am seeing it as “yield” as well as “income growth”. Which is it?
I wouldn’t be sure which to use if both are given, although from the context of real rates being provided, it may be clear in a given question. It would be nice to know of a CFAI question on this. I may look to the actual curriculum since it seems Schweser may not have covered this well.
It isn’t really the same thing. EPS growth is a proxy for the real GDP growth (labor productivity growth + labor supply growth rate). On the other hand, the PE growth is a proxy for how efficient the markets are (wether the security is over/undervalued).
The before-last item is the Income component (which also includes the reinvestment income) : Basically a dividend yield + eventually a reinvestment return from this dividend yield.
I have struggled with this quite a lot then went back to CFAi for Reading 28. Was worth the read. Schweser and Wiley are too much simplistic on this chapter.