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Business, 21.09.2021 18:40 jerseygirl6167

Item3 10 points my work Check My Work button is not enabled Item 3 Consider a three-factor APT model. The factors and associated risk premiums are: Factor Risk Premium (%) Change in gross national product (GNP) +6.3 Change in energy prices 0.7 Change in long-term interest rates +2.7 Calculate expected rates of return on the following stocks. The risk-free interest rate is 4.3%. A stock whose return is uncorrelated with all three factors. (Enter your answer as a percent rounded to 1 decimal place.) A stock with average exposure to each factor (i. e., with b = 1 for each). (Enter your answer as a percent rounded to 1 decimal place.) A pure-play energy stock with high exposure to the energy factor (b = 2.4) but zero exposure to the other two factors. (Enter your answer as a percent rounded to 2 decimal places.) An aluminum company stock with average sensitivity to changes in interest rates and GNP, but negative exposure of b = –1.7 to the energy factor. (The aluminum company is energy-intensive and suffers when energy prices rise.) (Enter your answer as a percent rounded to 2 decimal places.)

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Item3 10 points my work Check My Work button is not enabled Item 3 Consider a three-factor APT mode...
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