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Suppose the market portfolio is equally likely to increase by 30% or decrease by 10%.
a) find out 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) find out the beta of firm that goes up on average by 18% when the market goes down by 22% when the market goes up.
c) find out the beta of a firm that is expected to go up by 4% independently of the market.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M929077

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