Suppose two factors are identified for the U. S. economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 6% and IR 5%. A stock with a beta of 1 on IP and 0.8 on IR currently is expected to provide a rate of return of 11%. If industrial production actually grows by 7%, while the inflation rate turns out to be 8%, what is your best guess for the rate of return on the stock

the best guess is 14.4%

Explanation:

The computation of the best guess for the rate of return on the stock is shown below

Before

11% = α + [6% × 1] + [5% × 0.8]

11% = α + 6% + 4%

α = 1%

Now With the changes:

=  1% + [7% × 1] + [8% × 0.8]

= 1%  + 7% + 6.4%

= 14.4%

Hence, the best guess is 14.4%

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation: