Suppose that two factors have been identified for the Canadian economy: the growth rate of industrial production, IP, an

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Suppose That Two Factors Have Been Identified For The Canadian Economy The Growth Rate Of Industrial Production Ip An 1 (70.22 KiB) Viewed 12 times

Suppose that two factors have been identified for the Canadian economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 3%, and IR 7.0%. A stock with a beta of 2.3 on IP and 1.6 on IR currently is expected to provide a rate of return of 10%. If industrial production actually grows by 6%, while the inflation rate turns out to be 9.0%, what is your revised estimate of the expected rate of return on the stock? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Revised expected rate of return %