If industrial production actually grows by 8.75 while the, Ask an Expert

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Suppose two factors are identified for the US economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 7.75% and IR 11.8%. A stock with a beta of 1.0 on IP and .4 on IR currently is expected to provide a rate of return of 12.6%

If industrial production actually grows by 8.75%, while the inflation rate turns our to be 12.8%, what is your best guess for the rate of return on the stock?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M993601

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