12.3 If in the additional month of data Ford is down 5% while the market is up...
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12.3 If in the additional month of data Ford is down 5% while the market is up 5%, we would expect beta to fall. In this month, Ford's stock moved in opposition to the market index. Add- ing this observation therefore reduces our estimate of Ford's typical response to market move- ments. In fact, beta falls to 1.75.
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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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