12.1 We would expect beta to fall from the value obtained in the spreadsheet. Ford's return in...
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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.
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Fundamentals Of Corporate Finance
ISBN: 9780073382302
6th Edition
Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus
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