macroeconomic model estimate required return or risk premium required, surprise, return, growth

Penny-wenny

in the text, it is mentioned that macroeconomic model estimate required return by surprise, but it also stated that Ibostan chen model is a macroeconomic model, but ibostanchen model is used to estimate market risk premium by using some parameter like GDP growth and P/E growth, so macroeconomic model estimate required return or risk premium?

random_walker47

Macroeconomic model = Measuring total return
Ibostan Chen model = Measuring equity risk premium.
They are two different models measuring two different things using different variables. Dont get confused.