Melati is trying to calculate market return from forward looking equity risk premium using Macroeconomic Model. The informations she gathers are as follow: Expected Indonesia's inflation for 2021: 3% Indonesia's dividend yield: 2.249% Return from reinvested income: 0.5% Expected growth in P/E: 0.2% Expected growth in labor productivity: 1.86% Expected growth in labor supply: 1.1% 10 years government bond yield: 6.2% Using this approach, the market return is closest to............
Melati is trying to calculate market return from forward looking equity risk premium using Macroeconomic Model. The informations she gathers are as follow: Expected Indonesia's inflation for 2021: 3% Indonesia's dividend yield: 2.249% Return from reinvested income: 0.5% Expected growth in P/E: 0.2% Expected growth in labor productivity: 1.86% Expected growth in labor supply: 1.1% 10 years government bond yield: 6.2% Using this approach, the market return is closest to............
Chapter1: Making Economics Decisions
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![Melati is trying to calculate market return from forward looking equity risk premium using
Macroeconomic Model. The informations she gathers are as follow:
Expected Indonesia's inflation for 2021: 3%
Indonesia's dividend yield: 2.249%
Return from reinvested income: 0.5%
Expected growth in P/E: 0.2%
Expected growth in labor productivity: 1.86%
Expected growth in labor supply: 1.1%
10 years government bond yield: 6.2%
Using this approach, the market return is closest to.
............](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb1c61da4-6761-4e1d-85ac-005b940683c5%2Fb251a36a-69e9-42a7-969f-edf3e17f614f%2F5pp3zos_processed.png&w=3840&q=75)
Transcribed Image Text:Melati is trying to calculate market return from forward looking equity risk premium using
Macroeconomic Model. The informations she gathers are as follow:
Expected Indonesia's inflation for 2021: 3%
Indonesia's dividend yield: 2.249%
Return from reinvested income: 0.5%
Expected growth in P/E: 0.2%
Expected growth in labor productivity: 1.86%
Expected growth in labor supply: 1.1%
10 years government bond yield: 6.2%
Using this approach, the market return is closest to.
............
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