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A researcher has determined that a two - factor model is appropriate to determine the return on a stock. The factors are the percentage change
A researcher has determined that a twofactor model is appropriate to determine the return on a stock. The factors are the percentage change in GNP and an interest rate. GNP is expected to grow by percent and the interest rate is expected to be percent. A stock has a beta of on the percentage change in GNP and a beta of on the interest rate. If the expected rate of return on the stock is percent, what is the revised expected return on the stock if GNP actually grows by percent and the interest rate is percent? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
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