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To bring down the rising U . S . inflation rate, the Federal Reserve Bank ( US Central Bank ) has raised the federal fund
To bring down the rising US inflation rate, the Federal Reserve Bank US Central Bank has raised the federal fund interest rate eleven times which led to higher riskfree rate and other market interest rates such as mortgage rates and prime interest rates. a How would the rising interest rates affect the two main drivers of the firm's stock price, namely, future growth rate of earnings g and cost of capital ksee discussion in chapter b What effect this higher riskfree rate would likely have on the required returns and stock prices of technology and financial firms according to the predictions of CAPM as shown in Figure Limit your answers to sentences.
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