An analyst is considering the following forecasted economic data for France: risk-free rate = 2.5%; dividend yield = 1.5%; share repurchases = 1%; nominal earnings growth = 3%; inflation = 1.3%; and change in P/E = 1%. Based on Grinold Kroner model, what is the estimated stock market return for France?

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The Answer of An analyst is considering the following forecasted economic data for France: risk-free rate = 2.5%; dividend yield = 1.5%; share repurchases = 1%; nominal earnings growth = 3%; inflation = 1.3%; and change in P/E = 1%. Based on Grinold Kroner model, what is the estimated stock market return for France?

An Analyst Is Considering the Following Forecasted Economic Data for France