Problem $9-06$

You are given the three EPS estimates and the following estimates related to the market earnings multiple:

Round your answers to the nearest cent.

High intrinsic market value: $

Low intrinsic market value: $

Consensus intrinsic market value: $

intermediate calculations. Round your answers to one decimal place. Use a minus sign to enter negative rates of return, if any.

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 would you weight the S&P Industrials Index in your global portfolio?

One should

the U$.$S$.$ stocks in a global portfolio.