An analyst uses the Grinold-Kroner model to estimate the stock market return. The analyst forecasts a 1.5% dividend yield, 2% real dividend growth, 2% long-term inflation, 1% average annual reduction in share outstanding and an overall market contraction in valuation of 0.5%. What should be the analyst's forecast of the equity market return? a. 4% O b. 5% O C. 6% d. 7%

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A: Sharpe ratio is a financial measure which measure the risk adjusted return if the given portfolio.

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Q: A stock is expected to pay a dividend of $1.27 at the end of the year. The required rate of return…

A: Formula: Current stock price = Expected dividend / (Required return - Growth rate)

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Q: Assume these are the stock market and Treasury bill returns for a 5-year period: Stock Market T-Bill…

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Q: stocks

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A: Hi thanks for the question. Question has multiple sub parts. As per company guidelines expert should…

Q: An investment analyst estimates the following probabilities of return depending on the state of the…

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