Question: QUESTION 1 6 Semitool Corp. has an expected excess return of 2 0 % for next year. However, for every unexpected 1 % change in

QUESTION

16

"Semitool Corp. has an expected excess return of

20 %

for next year. However, for every unexpected

1 %

change in the market, Semitool's return responds by a factor of

0.9 .

Suppose it turns out that the economy and the stock market do better than expected by

10 %

and Semitool's products experience more rapid growth than anticipated, pushing up the stock price by another

4 % .

Based on this information, what was Semitool's actual excess return? Note: Express your answers in strictly numerical terms. For example, if the answer is

5 %,

write

0, 05^{''}

QUESTION 1 6 "Semitool Corp. has an expected

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