Question: Question 3 5 pts Suppose there is one systemic factor that affect stocks returns in the US economy: the interest rate (IR). IR was expected
Question 3 5 pts Suppose there is one systemic factor that affect stocks returns in the US economy: the interest rate (IR). IR was expected to grow by 8%. If the actual growth rate was 5% and the beta on the stock is 1.4, what is the new expected return on the the stock if you previously expected it to return 8% (Enter the value in percent, so 1% = 1)
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