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Basic Question 0 of 16
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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Learning Outcome Statements
describe fixed-income securities with embedded options;
CFA® 2025 Level II Curriculum, Volume 4, Module 28.