Macroeconomics 12th Edition by Rudiger Dornbusch ,Stanley Fischer,Richard Startz

Exercise 14

From 1947 through 1991, the average annual return to holding common stocks was 7 percent while the average annual percentage growth in business fixed investment was 3.5 percent. From 1992 through 1999, the average annual return to holding common stocks was 16 percent and the average annual percentage growth in business fixed investment was 8 percent. How would q theory link these changes