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Please assist with this questions Suppose two factors are Identified for the U.S. economy: the growth rate of Industrial production, IP, and the Inflation rate,

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Suppose two factors are Identified for the U.S. economy: the growth rate of Industrial production, IP, and the Inflation rate, IR, IP Is expected to be 5% and IR 6%. A stock with a beta of 1 on IP and 0.B on IR currently is expected to provide a rate of return of 13%. If Industrial production actually grows by 6%, while the Inflation rate turns out to be 7%, what Is your best guess for the rate of return on the stock? (Round your answer to 1 decimal place.) Rate of retumSuppose there are two Independent economic factors. M, and M.. The risk-free rate is 5%, and all stocks have Independent firm- specific components with a standard deviation of 40%. Portfolios A and 8 are both well diversified. Portfolio Beta on Nj Beta on Ma Expected Return (4) 3.1 -0.5 What Is the expected return-beta relationship In this economy? (Do not round Intermediate calculations. Round your answers to 2 decimal places.] Expected mouum-both relationship E(:P] = 3.41 8P1 + MacBook AirCheck my work Assume both portfolios A and B are well diversified, that stra) = 13.4% and Firm) = 15.04. If the economy has only one factor, and BA - i while Ba - 1.3, what must be the risk-free rate? (Do not round Intermediate calculations. Round your answer to 1 decimal place.) Risk-free rate A MacBook Air

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