Capital Market Expectations Flashcards
1
Q
Trend Rate of Growth
A
= labor input + capital per worker + TFP
Labor input = population growth + labor force participation
TFP = technology + government
2
Q
Neutral Policy Rate
A
3
Q
Expected nominal rate
A
Neutral rate + expected inflation
4
Q
Formula for equity return
A
5
Q
Recently equity have performed well and I do not want to underweight them. Which bias is this?
A
Status quo bias
