B Calculate the expected annual equity return using the Grinold–Kroner model (assume no change in the number of shares outstanding).
答案：
The Grinold–Kroner model states that the expected return on equity is the sum of the expected income return (2.4%), the expected nominal earnings growth return (7.3% = 2.3% from inflation + 5.0% from real earnings growth) and the expected repricing return (−3.45%). The expected change in market valuation of −3.45% is calculated as the percentage change in the P/E level from the current 14.5× to the expected level of 14.0×: (14 − 14.5)/14.5 = −3.45%. Thus, the expected return is 2.4% + 7.3% − 3.45% = 6.25%.（为什么不是7.3-8.3/8.3？）为什么不是一个变化率的概念？
C Using your answer to Part B, calculate the expected annual equity risk premium.
