Posted by **Anonymous** on Monday, August 2, 2010 at 11:12pm.

31. Suppose the market portfolio is equally likely to increase by 30% or decrease by 10%.

a. Calculate the beta of a firm that goes up on average by 43% when the market goes up and goes down by 17% when the market goes down.

b. Calculate the beta of a firm that goes up on average by 18% when the market goes down and goes down by 22% when the market goes up.

c. Calculate the beta of a firm that is expected to go up by 4% independently of the market.

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