Question
b. Suppose that the market expects the values for the three macro factors given in column 1 below, but that the actual values turn
b. Suppose that the market expects the values for the three macro factors given in column 1 below, but that the actual values turn out as given in column 2. Calculate the revised expectations for the rate of return on the stock once the "surprises become known. (Do not round intermediate calculations. Round your answer to 1 decimal place.) Factor Inflation Industrial production Oil prices Expected Value 8% 5 2 Actual Value 8% 9 0 X Answer is complete but not entirely correct. Expected rate of return 21.5 X %
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Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
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