Overton Markets Stock Has an Expected Return of 7

question 47

Multiple Choice

Overton Markets stock has an expected return of 7.8 percent and betas of: β_GNP = 1.06; β_I = 1.01; and β_Ex = .52.This expectation is based on a three-factor model with expected values of: GNP growth of 2.6 percent; inflation of 3.1 percent; and export growth of 1.4 percent.However,actual growth in these factors turns out to be 3.1 percent,2.6 percent,and .2 percent,respectively.Calculate the stock's total return if the company unexpectedly announces that an important patent filing has been granted sooner than expected and will earn the company 5 percent more in return,(i.e.from 10 percent up to 15 percent) .

• A)16.02 percent
• B)12.20 percent
• C)11.55 percent
• D)10.90 percent
• E)11.02 percent

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A social attitude that emphasizes the need for authorities to guide or restrict the actions of those deemed less experienced or capable, often justified by a belief in the latter's best interest.

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A slave rebellion led by Nat Turner in Virginia in 1831, which resulted in the deaths of dozens of white people and led to harsher laws against slaves.