If the pe ratio on the sampp 500 is 10 given historical


If the P/E ratio on the S&P 500 is 10, given historical earning growth patterns, what would be a reasonable estimate of long-run future expected rates of return on the stock market? Assume a long-run inflation rate of 2.5 per annum.

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Finance Basics: If the pe ratio on the sampp 500 is 10 given historical
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