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Table 1 Estimated Total Returns State of the Economy Probability T-Bond SETX Golden S&P 500 Recession 5% 5% -19% 20% -14% Below Average 15% 5%
| Table 1 Estimated Total Returns | |||||
| State of the Economy | Probability | T-Bond | SETX | Golden | S&P 500 |
| Recession | 5% | 5% | -19% | 20% | -14% |
| Below Average | 15% | 5% | 2% | 13% | 3% |
| Average | 45% | 5% | 9% | 10% | 11% |
| Above Average | 25% | 5% | 34% | 5% | 22% |
| Boom | 10% | 5% | 25% | -5% | 33% |
What would be your best estimate for the required return for SETX using the SML equation, constant growth model plus the bond risk premium method?
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