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?