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............

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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