Question
You conducted multiple regression using quarterly data and found a slightly significant alpha of 0.003, a beta factor for the market of 0.95, and a
You conducted multiple regression using quarterly data and found a slightly significant alpha of 0.003, a beta factor for the market of 0.95, and a beta factor for GDP of 0.55. If GDP is expected to grow at 1.61% next quarter and the market is expected to grow at 3.32%, then what is your estimated return for the underlying stock using this multiple regression approach? State your answer with two decimal places, and using a raw number, not a percentage (i.e., 13.21, not .1321). Hint: Enter the percentages, in your multiple-regression formula, in decimal form, and then adjust your answer to the required format.
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