Suppose that two factors have been identified for the U. S. economy: the growth rate of industrial production, IP, and the inflation rate, INF. IP and INF are expected to be 3% and 5%, respectively. A stock with a beta of 1 on IP and 0.5 on INF currently is expected to provide a rate of return of 12%. If IP actually grows by 5%, while INF turns out to be 8%, what is your revised estimate of the expected rate of return on the stock

Stocks a, b, and c are similar in some respects: each has an expected return of 10% and a standard deviation of 25%. stocks a and b have returns that are independent of one another; i. e., their correlation coefficient, r, equals zero. stocks a and c have returns that are negatively correlated with one another; i. e., r is less than 0. portfolio ab is a portfolio with half of its money invested in stock a and half in stock b. portfolio ac is a portfolio with half of its money invested in stock a and half invested in stock c. which of the following statements is correct? a. portfolio ab has a standard deviation that is greater than 25%.b. portfolio ac has an expected return that is less than 10%.c. portfolio ac has a standard deviation that is less than 25%.d. portfolio ab has a standard deviation that is equal to 25%.e. portfolio ac has an expected return that is greater than 25%.