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Business, 11.03.2020 23:14 drainy0uandthefish

Suppose that two factors have been identified for the U. S. economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 4%, and IR 3.0%. A stock with a beta of 1.1 on IP and 0.5 on IR currently is expected to provide a rate of return of 7%. If industrial production actually grows by 7%, while the inflation rate turns out to be 5.0%, what is your revised estimate of the expected rate of return on the stock

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Suppose that two factors have been identified for the U. S. economy: the growth rate of industrial p...
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