What is the sum of the consensus expected return

Reference no: EM13925550

Assume a risk-free rate of 6 percent, a benchmark expected excess return of 6.5 percent, and a long-run benchmark expected excess return of 6 percent. Given that McDonald's has a beta of 1.07 and an expected total return of 15 percent, separate its expected return into Time premium Risk premium

Exceptional benchmark return Alpha

Consensus expected return Expected excess return Exceptional expected return

What is the sum of the consensus expected return and the exceptional expected return?

Reference no: EM13925550

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