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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Suppose that the market can be described by the following three sources of systematic risk with associated risk premiums.
|
Factor |
Risk Premium |
|
Industrial production (I) |
6% |
|
Interest rates (R) |
2 |
|
Consumer confidence (C) |
4 |
Find the equilibrium rate of return on this stock using the APT. The T-bill rate is 6%. Is the stock over- or underpriced? Explain
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