Question: 15. You are using the multifactor model to estimate the ex- pected return on Emerson Electric and have derived the following estimates for the factor

15. You are using the multifactor model to estimate the ex- pected return on Emerson Electric and have derived the following estimates for the factor betas and risk premia: Macro-economic Measure factor Beta Risk premia (R factor R) 0.5 1.8% 1.4 0.6% Level of T-bond rate interest rates Term structure T-bond rate-T-bill rate Inflation rate CPI Economic GNP growth rate growth 1.2 1.8 1.5% 4.2% With a riskless rate of 6%, estimate the expected return on Emerson Electric

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