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Use the following information to answer the question(s) below.
Assume that the CAPM is a good description of stock price returns. The market expected return is 8% with 12% volatility and the risk-free rate is 3%. New information arrives that does not change any of these numbers, but it does change the expected returns of the following stocks:
-The expected alpha for Taggart Transcontinental is closest to:
Aggregate Output
The total value of goods and services produced in an economy over a specific period, often used as a measure of economic performance.
Real GDP
The measure of a country's economic output adjusted for price changes (inflation or deflation), providing a more accurate reflection of an economy's size by valuing goods and services at constant prices.
Price Level
The average of the current prices of all goods and services in an economy, often compared to a base year's prices to assess inflation.
Aggregate Expenditure
The total spending on final goods and services in an economy, including consumption, investment, government spending, and net exports.
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