S&P $500$ valuation measures

GTM$-$U$.$S$.|5|$

$1996,$ and J$.$P$.$ Morgan Asset Management for September $30,2021.$ Curr's P$/$E uses trailing $10-$years of inflation$-$adjusted eamings as reported by

of EPS over the next $12$ months divided by price$)$ minus the Moody's Baa seasoned corporate bond yield. Std$.$ dev. Over$-$funder

the average and standard deviation over $25$ years for each measure.

a$)$ Is the market currently cheap or expensive relative to its long$-$term average? Explain?

b$)$ Compared to the financial crisis in $\frac{2008}{2009}$ is the stock market as cheap $/$ the same $/$ or more expensive? Explain?