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Basic Question 1 of 3
The percentage change in stock market value is the sum of the percentage change in GDP, the share of earnings in GDP and the P/E ratio. In the long run, which factor must dominate? The percentage change in:
B. the share of earnings in GDP.
C. the P/E ratio.
A. GDP itself.
B. the share of earnings in GDP.
C. the P/E ratio.
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.

Martin Rockenfeldt
Learning Outcome Statements
contrast capital deepening investment and technological progress and explain how each affects economic growth and labor productivity;
demonstrate forecasting potential GDP based on growth accounting relations;
CFA® 2026 Level II Curriculum, Volume 1, Module 9.