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You are given the three EPS estimates and the folowing estimates related to the market eamings multiple: a. dased on the three EPS and P/E

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You are given the three EPS estimates and the folowing estimates related to the market eamings multiple: a. dased on the three EPS and P/E estimates, compute the high, low, and consensus intrinsic market value for the S8P Industrials Index in 2018. Do not round intermediate calculations. Round your answers to the nearest cent. High intrinsic market value: 5 Low intrinsic market value: s Consensus intrinsic market value: 5 b. Assuming that the SaP Industrials Index at the beginning of the year was peiced at 2,150 , compute your estimated rate of retum under the three scenarios from Part a. Do not round intermedlote calculations. Round vour answers to one decimal place. Use a minus ign to enter negative rates of return, if any. pate of return (optimistic scenario): Rate of return (pessimistic scenario): Rate of return (consensus scenario): Assuming your required rate of return is equal to the consensus, how would you weight the SBP Industrials Index in your gicoal portfolio? One should the U.5, stocks in a giobal portfolia. a. Based on the three EPS and P/E estimates, compute the high, low, and calculations. Round your answers to the nearest cent. High intrinsic market value: \$ Low intrinsic market value: \$ Consensus intrinsic market value: \$ b. Assuming that the S\&P Industrials Index at the beginning of the year was not round intermediate calculations. Round your answers to one decimal Rate of return (optimistic scenario): % Rate of return (pessimistic scenario): % Rate of return (consensus scenario): % Assuming your required rate of return is equal to the consensus, how woul One should he U.S. stocks in a global portfolio

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