It merely isolates the equity risk premium.作者: ayodayo 时间: 2011-7-13 14:27
its a fundamental model
={(1+inflation rate)(1+ growth in gdp)(1+growth in P/E) -1}+ reinvestment rate on dividends - risk free rate
*there was a question in one of the vingettes i remember作者: RMontgomery 时间: 2011-7-13 14:27
growth in eps and growth in real gdp should be the same, and we assume they are. cfai text says if they are not then you adjusted real gdp.作者: Rasec 时间: 2011-7-13 14:27
I will attempt to remember this if I'm scoring 85+ on mock exams. Until then (maybe next year if I fail), I'll use my braincells on easier fish to catch.作者: profil 时间: 2011-7-13 14:27
I won't even bother with this one.作者: luda002 时间: 2011-7-13 14:27
It is an EOC question so it is fair game on the exam, one would think作者: scarecrow 时间: 2011-7-13 14:27
yeah, i had this question about a month ago too (because its an EOC).
i'm going to ignore it - cant imagine more than one question. And if it does come up, i'm assuming one of the "wrong" answer choices will be like the CAPM calculation or something - so i will hopefully be able to eliminate bad choices..
