Question: k=0.10 a. Assuming that the current value for the S&P Industrials Index is 3,000, would you underweight, overweight, or market weight the U.S. equity market?

k=0.10 a. Assuming that the current value for the S\&P Industrials Index is 3,000, would you underweight, overweight, or market weight the U.S. equity market? Do not round intermediate calculations. Round your answer to the nearest cent. You should the U.S. equity market as the estimated value of the stock of $ is the S\&P Industrials Index. b. Assume that there is a 1 percent increase in the rate of inflation - what would be the market's value, and how would you weight the U.S. market? Assume that the required return would increase from 10% to 11%, decreasing the value. Also assume that the nominal cash flow growth rates would increase for all time periods by one percentage boint. Do not round intermediate calculations. Round your answer to the nearest cent. You shoule . - -Solectthe U.S. equity market as the estimated value of the stock of $ is than the S\&P Industrials Index
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