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 5%, and ir 4.2%. a stock with a beta of 1.6 on ip and 1.1 on ir currently is expected to provide a rate of return of 13%. if industrial production actually grows by 7%, while the inflation rate turns out to be 5.5%, what is your revised estimate of the expected rate of return on the stock? (do not round intermediate calculations. round your answer to 1 decimal place.)

The average u.s. household has $178,600 in life insurance. the standard deviation is $25,500. a local insurance agent would like to see how households in his city compare to the national average, and selects a simple random sample of 30 households from the city. for the households in the city, the average amount of life insurance is $188,800. a. based on the sample results, construct a 95% confidence interval for the true average amount of life insurance for households in the city. b. test the h0 : $178,600 ? ? to determine if the city's sample average is significantly different from the u.s. average amount of life insurance per household. use the conventional levels of significance.