In 2000 the P/e ratio of the stock market reached about 45. If you assume that these corporations will grow roughly at the overall economys (GDP) growth rate of 4-5% per year, what should investors have reasonably expected in terms of a likely future rate of return implied by the stock markets level? show your work
In 2000 the P/e ratio of the stock market reached about 45. If you assume that these corporations will grow roughly at the overall economys (GDP) growth rate of 4-5% per year, what should investors have reasonably expected in terms of a likely future rate of return implied by the stock markets level? show your work
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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In 2000 the P/e ratio of the stock market reached about 45. If you assume that these corporations will grow roughly at the overall economys (GDP) growth rate of 4-5% per year, what should investors have reasonably expected in terms of a likely future
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