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36. Multifirm Co. wants to open a new subsidiary in Peru and needs information about the market risk premium in Peru; however, this information is

36. Multifirm Co. wants to open a new subsidiary in Peru and needs information about the market risk premium in Peru; however, this information is not available. On the other hand, Multifirm Co. knows that the market risk premium in the U.S. (its home country) is 5.2% and that the standard deviation for the U.S. market is 7% and for the Peruvian market is 11%. Based on this information, what is the estimated market risk premium in Peru

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