Sunday
September 21, 2014

Homework Help: Finance

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.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

calculating BETA - I am having the most trouble with this. Any help or direction...
Finance - You would like to create a portfolio that is equally invested in a ...
Finance - ____ in the beta coefficient normally causes____ in the required ...
Finance - Required Return from a Beta - Hi, I need to learn how to explain and ...
Finance - A portfolio consists of three stocks. The weight, expected rate of ...
Finance - You hold a diversified portfolio consisting of a $10,000 investment in...
finance - 2. ABC Inc. is a levered company. The firm has $50 million bonds ...
Accounting - Your firm has the following income statement items: sales of $50,...
finance - Consider the following data for a one-factor economy. All portfolios ...
investing - You have a $ 2 million portfolio consisting of $100,000 investment ...

Search
Members