baseline projection for continuously compounded long-term equity return

CFA Level III
#1

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

#2

What’s your question?

#3

how can you get continuously compounded return from this equation?

#4

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

#5

thanks

#6

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.

#7

thanks for pointing this out.