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Suppose Reflective Corporation's common stock has an actual return of 1 2 . 3 4 percent compared to its expected return of 1 2 .

Suppose Reflective Corporation's common stock has an actual return of 12.34 percent compared to its expected return of 12.6 percent. The risk-free rate was expected to be 4.3 percent, which it was. The beta of Fi is .9 and the beta of FGNP is 1.1. If inflation unexpectedly increased by 1.4 percent, what was the unexpected change in GNP?

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