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baseline projection for continuously compounded long-term equity return

assuming no growth in P/E,

labour input growth + labour productivity growth + inflation + dividend yield = baseline projection for continuously compounded long-term equity return?

textbook capital market expection page 185

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What’s your question?

Simplify the complicated side; don't complify the simplicated side.

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S2000magician wrote:

What’s your question?

how can you get continuously compounded return from this equation?

It’s an estimate; you add all of the sources of growth.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/

S2000magician wrote:

It’s an estimate; you add all of the sources of growth.

thanks

You’re welcome.

By the way, I agree with what I believe your position to be: they should have mentioned somewhere in the text that that’s what they’re doing.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/