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∆Y ∆ A ∆K ∆L
≈ +α + ( 1−α )
Growth Acctg Equation (Cobb-Douglas): Y A
⏟ K L
TFP γ
E1
Yardeni model: = y B −d ∙ LTEG
P0
n
Geo mean return / yr: ¿ ( √ 1+r total−1 ) ∙ 12 , where ( 1+r t )=( 1+r 1) ( 1+r 2 ) … ( 1+r n)
D P
E ( Re ) ≈ − ∆
⏟ S +i+ g⏟ + ∆
⏟P exp .
⏟E exp .
exp . ∆ ∈¿ real per
¿ of total period
Grinold-Kroner: ⏟ ⏟
yld shares earnings
γ
%∆
¿ PE
⏟ ⏟ repurchase
yld exp . nominal
multiple
earnings γ exp .
exp .income retutn repricing
return