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Business, 07.08.2019 06:10 viktoria1198zz

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.)

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