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The following four factors were identifies and later used to explain the return on a stock and level of sensitivity GDP growth: =0.6, Rp=4% Inflation
The following four factors were identifies and later used to explain the return on a stock and level of sensitivity GDP growth: =0.6, Rp=4% Inflation rate: =0.6, RP=5% Gold Prices: =0.8, RP=6% Standard and Poors 500 Index Returns: =2.5, RP=8% The risk free rate is 6% Using the APT formula, calculate the expected rate of returns on the stock
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