Riga Wine is a US corporation that derives its revenues from the United States where it has a beta of 1.25. The Ten-year US a Treasury Bond Rate is 2% and the US equity risk premium is 6%. The company is considering expanding into Chile; the ten- year Chilean government bond rate (in pesos) is 4% and the Chilean sovereign rating is A3. The default spread for A3 rated countries is 0.5%. Using the fact that the Chilean Index is twice as volatile as the Chilean government bond, what is the equity risk premium for Riga Wine in Chilean Pesos? O 7.5% O 12.63% 09.63% O None of the above 7% Riga Wine is a US corporation that derives its revenues from the United States where it has a beta of 1.25. The Ten-year US a Treasury Bond Rate is 2% and the US equity risk premium is 6%. The company is considering expanding into Chile; the ten- year Chilean government bond rate (in pesos) is 4% and the Chilean sovereign rating is A3. The default spread for A3 rated countries is 0.5%. Using the fact that the Chilean Index is twice as volatile as the Chilean government bond, what is the equity risk premium for Riga Wine in Chilean Pesos? O 7.5% O 12.63% 09.63% O None of the above 7%