baseline projection for continuously compounded long-term equity return

[archived_user]

assuming no growth in P/E,
labour input growth + labour productivity growth + inflation + dividend yield = baseline projection for continuously compounded long-term equity return?
textbook capital market expection page 185

 

[archived_user]

What’s your question?

 

[archived_user]

S2000magician wrote:
What’s your question?

how can you get continuously compounded return from this equation?

 

[archived_user]

It’s an estimate; you add all of the sources of growth.

 

[archived_user]

S2000magician wrote:
It’s an estimate; you add all of the sources of growth.

thanks

 

[archived_user]

You’re welcome.
By the way, I agree with what I believe your position to be: they should have mentioned somewhere in the text that that’s what they’re doing.