1. Calculate and commnet on Beta of Axe brand.

a. beta value 0.50 and its means Axe Brand is more risky than market.

b. beta value 1.50 and its means Axe Brand is more risky than market.

c. beta value 0.50 and its means Axe Brand is less risky than market.

2. Calculate and comment on Beta of Eclipse mint.

a. Beta value -0.50 which means Eclipse Mints is goes same direction with market.

b. Beta value 0.50 and its means Eclipse Mints is less risky than market

c. Beta value -0.50 which means Eclipse Mints goes opposite direction to market.

3. Assume that you want to invest $43000 out of your $78,000 total investment in Axe Brand. what is portfolio Beta?

a. 1.00

b. -0.05

c. 0.05

4. From the portfolio beta it can be inferred that

a. if market increases by 10% portfolio value will decrease by -5%

b. if the market increases by 10% portfolio value will increase by 5%

c. if market decreases by 10% portfolio value will decrease by 0.5%

From the following Information calculate State of Economy Axe Brand Eclipse Mints 125 249 Good 225 Market Bad 10 30N 145