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Government bonds are yielding 6.0%, and the equity market is yielding 5.0%, while total returns for the stock market are historically 11.0%. Currently the market
Government bonds are yielding 6.0%, and the equity market is yielding 5.0%, while total returns for the stock market are historically 11.0%. Currently the market P/E ratio is 30.0% higher than the long run average of 12.0x. What is the current P/E imply about the expected market growth rate? Round to the nearest whole percentage.
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