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APPENDIX E: 30 Percent Value Gap in S&P ... > HOW DID THE GAP CLOSE? - Pg. 163

APPENDIX E 30 Percent Value Gap in S&P 500 Closed by Rise in Treasury Yields, Price* hen I first wrote about the Risk Premium Factor (RPF) Valuation Model on on September 28, 2010 (see Appendix C), I de- scribed how the S&P 500 appeared to be undervalued by about 30 percent based on expected 2010 earnings and current yield on 30-year Treasury bonds. The S&P 500 was at 1,142, and the 30-year Treasury was yielding W