6. Suppose that two factors
redio26.
value:
10.00 points
10.00 points
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. Omit the "%" sign in your response.) |
Revised expected rate of return | [removed] % |
- 9 years ago
- 15
Answer(2)
Purchase the answer to view it
- suppose_that_two_factors_have_been_identified_for_the_u.docx
Purchase the answer to view it
NOT RATED
Bids(0)
other Questions(10)
- Business law 10 questions
- 15.5+y=10.5
- Prof Goodluck
- ENERGY-CONSERVATION-LAB
- DISCUSSION BOARD
- packaging
- For Nyanya Only, here is my discussion questions. need 300words for each question.
- Business Policy and Strategy - CSU (Case Studies - Units I - VII)
- What has been the impact of faster and cheaper computers for personal and company use? What technological advances and benefits are driving the expansion in the use of personal computers? What are the limitations of faster and cheaper computers?
- Financial Administration