canadiananalyst

iteracom Wrote:
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> All of this is in the curriculum. why don't you
> look it up?
>
> %change S is the change in shares outstanding
>
> g can be derived either Nom GDP or Real GDP +
> Inflation
>
> change in PE is the price multiple



i did look it up. what i mean to ask is why change in PE has a positive relationship with E(r) ?
can u help explain that?