Business, 07.05.2020 07:05 shaniahharrisoov3lqv

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 3%, and IR 3.3%. A stock with a beta of 1.8 on IP and 1.3 on IR currently is expected to provide a rate of return of 15%. If industrial production actually grows by 6%, while the inflation rate turns out to be 5.2%, 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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