9. A study shows that the factors that influence the stock return include GDP growth, inflation, interest

Question:

9. A study shows that the factors that influence the stock return include GDP growth, inflation, interest rate, stock market index and industrial growth. Global Ltd has the following information about its stock: Expected Actual Beta value (%) value (%) GDP growth 1.8 8.5 6.7 Inflation 1.4 7.0 9.0 Interest rate 0.8 9.5 10.0 Stock market index 2.10 10.0 12.5 Industrial growth 1.95 11.0 8.5 Assume risk-free return is 8.5 per cent. Calculate total return of the company's stock.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: