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Suppose two factors are identified for the US. economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to

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Suppose two factors are identified for the US. economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 6% and IR 5%. A stock with a beta of 1 on IP and 0.8 on IR currently is expected to provide a rate of retum of 1%. If industrial production actually grows by 7%, while the inflation rate tums out to be 8%, what will be your expected rate of retum on the stock, given the new information about the industrial production rate and the inflation rate

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