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Basic Question 0 of 8
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 general principles of revenue recognition, specific revenue recognition applications, and implications of revenue recognition choices for financial analysis
CFA® 2025 Level I Curriculum, Volume 2, Module 2.