Question: k=0.07 A. Assuming that the current value for the SE.P tndustrials index is 5,900, would you underweight, overweight, or market weight the U.S. equity market?

 k=0.07 A. Assuming that the current value for the SE.P tndustrials

k=0.07 A. Assuming that the current value for the SE.P tndustrials index is 5,900, would you underweight, overweight, or market weight the U.S. equity market? Do not round intermediat calculabons: Round your answer to the nearest cent. You should the U.S. equity market as the estimuted value of the stock of s is the SBP Industrials index. b. Assume that there is a 2 percent increase in the rate of inflation - what would bo the market's value, and how would you weight the U.S. market? Assume that the required return would increase from 7% to 9%, decreasing the value. Also assume that the nominal cash flow ofowth rates would increase for all time periods by two percentage points. Do not found intermediste calculations. Found your answer to the nearest cent. You should the U.S. equity market as the estimated value of the stock of \$ is than the SRP Industriak Index

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