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An analyst's factor model for Stock U is r t = -0.012 + 1.62 f t + e t . Calculate the model's predicted return
An analyst's factor model for Stock U is rt = -0.012 + 1.62ft + et. Calculate the model's predicted return for Stock U if ft = -0.043. Express your answer as a decimal with four digits after the decimal point (e.g., 0.1234 or -0.1234, not 12.34% or -12.34%).
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