Matlab代寫|金融代寫 - MATLAB金融 工程
The picture below represents the methodology to forecast equity returns used by Invesco.
As you can see their expected return is the sum of three components: Total Yield (a slightly modified version
of the dividend yield), Earnings Growth and Valuation Change.
Explain in layman terms, without using any formula, what is the Valuation Change component. Try to capture
the economic intuition behind this concept. Under which economic circumstances this quantity could be