Suppose That We Have Identified Three Important Systematic Risk Factors $\beta$

question 30

Multiple Choice

Suppose that we have identified three important systematic risk factors given by exports, inflation, and industrial production. In the beginning of the year, growth in these three factors is estimated at -1%, 2.5%, and 3.5% respectively. However, actual growth in these factors turns out to be 1%, -2%, and 2%. The factor betas are given by $\beta$ _EX = 1.8, $\beta$ _I = 0.7, and $\beta$ _IP = 1.0. If the expected return on the stock is 6%, and no unexpected news concerning the stock surfaces, calculate the stock's total return.

• A) 2.95%
• B) 4.95%
• C) 6.55%
• D) 7.40%
• E) 8.85%

Identify the various types of warranties and their implications in business transactions.

Understand the challenges and considerations in dealing with intellectual property.

Comprehend the importance and methods of managing sustainability and ethical practices in supply chains.

Recognize the role of arbitration, litigation, and conflict resolution in contracts.

---

Definitions:

Days Past Due

The number of days that have elapsed since a payment was due, often used in financial contexts to indicate overdue payments.

Inquiry

The act of seeking information by questioning or investigation.

Professional Courtesy

A practice among professionals of providing services to each other at reduced rates or without charge.

Medical Provider

A healthcare professional or organization that provides health care services, including diagnosis, treatment, and preventive care.