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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 in GNP
A researcher has determined that a two-factor 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 5.3 percent, and the interest rate is expected to be 4.8 percent. A stock has a beta of 3.0 on the percentage change in GNP and a beta of |
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