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According to the Two-Factor model for stock STK, the stock's excess return is equal to 5%, the Factor betas with respect to growth and interest
According to the Two-Factor model for stock STK, the stock's excess return is equal to 5%, the Factor betas with respect to growth and interest rate surprises amount to 1.5 and -2.0. If we are told that in 2020 the unexpected growth surprise will amount to -2% and the unexpected interest rate surprise will be -2.0%, then STK's excess returns will be: a. 6.00% O b. 12% C. -2.00% d. 1.00%
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