Problem 9-06 You are given the three EPS estimates and the following estimates related to the market earnings multiple: 0.12 Pessimistic Consensus Optimistic EPS $50.42 $65.32 DVE 0.50 0.45 0.40 Nominal RFR 0.11 0.10 Risk premium 0.04 0.03 ROE 0.09 0.11 0.13 a. Based on the three EPS and PE estimates, compute the high, low, and consensus intrinsic market value for the SAP Industrials Index in 2018. Do not round Intermediate calculations. Round your o wers to the nearest cent. High intrinsic market value: $ 0.05 Low intric market values Consensus intrinsic market values b. Assuming that the S&P Industrials Index at the beginning of the year was priced at 1,900, compute your estimated rate of return under the three scenarios from Parta. Do not round Intermediate calculations, Round your answers to one decimal place. Use a mission to enter negative rates of retum, any Rate of retum (optimistic scenario) Rate of return pessimistic scenario): Rate of retum 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 Select the US stocks in a global portfolio