Q 14.34. If the P/E ratio on the S&P 500 is 10, given historical earnings growth patterns,
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Q 14.34. If the P/E ratio on the S&P 500 is 10, given historical earnings 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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