Determining the estimated return for the underlying stock

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You conducted multiple regression using quarterly data and found a slightly significant alpha of 0.006, a beta factor for the market of 1.15, and a beta factor for GDP of 0.52. If GDP is expected to grow at 1.59% next quarter and the market is expected to grow at 2.74%, then what is your estimated return for the underlying stock using this multiple regression approach? State your answer with two decimal places, and using a raw number, not a percentage (i.e., 13.21, not .1321). Hint: Enter the percentages, in your multiple-regression formula, in decimal form, and then adjust your answer to the required format.

Reference no: EM133075094

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