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A financial analyst who analyzed CBM Corporation concludes that the earnings are expected to grow at 10% every year for the next 10 years. The
A financial analyst who analyzed CBM Corporation concludes that the earnings are expected to grow at 10% every year for the next 10 years. The analyst highly recommends buying this stock. After a week the Federal Reserve increases the interest rate from 2% to 2.5%. The S&P 500 index drops by 8%. CBM dropped by 4%. Explain these outcomes.
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