12.1 We would expect beta to fall from the value obtained in the spreadsheet. Ford's return in...

Question:

12.1 We would expect beta to fall from the value obtained in the spreadsheet. Ford's return in November (when the market fell) is not as bad as originally assumed, and its return in September (when the market rose) is not as good as originally assumed. In both cases, Ford's returns are less responsive to the market. In fact, beta falls to 2.07.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

Question Posted: