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Using ICAPM, please estimate the expected portfolio return to a U.S. Investor given the data below. CAPM Beta (vs World Index) 0.25 Expected MRP of

Using ICAPM, please estimate the expected portfolio return to a U.S. Investor given the data below.

CAPM Beta (vs World Index) 0.25
Expected MRP of the World Index 6.00%

US Treasury E(r)

Sensitivity between Portfolio Return and Euro fluctuations

2.00%

1.1

Risk Premium of Euro vs USD 1.00%

4.6%

4.9%

5.0%

5.3%

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