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Suppose that tomorrow the Federal Reserve will announce the weekly number of initial claims for unemployment insurance. You have a model that predicts the number

Suppose that tomorrow the Federal Reserve will announce the weekly number of initial claims for unemployment insurance. You have a model that predicts the number of initial claims for unemployment insurance this week will be twice as high as it was last week. If you were a mutual fund manager, how would you change the percentage of your portfolio that is invested in consumer cyclical stocks? Why?

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