6. Suppose the market portfolio is equally likely to increase by

37% or decrease by 14%.

a. Calculate the beta of a firm that goes up on average by 50%

when the market goes up and goes down by 27%

when the market goes down.

b. Calculate the beta of a firm that goes up on average by 22%

when the market goes down and goes down by

17% when the market goes up.

c. Calculate the beta of a firm that is expected to go up 4% independently of the market.

a. Calculate the beta of a firm that goes up on average by 50%

when the market goes up and goes down by 27%

when the market goes down.

The beta is______________.

(Round to two decimal places.)

b. Calculate the beta of a firm that goes up on average by

22%

when the market goes down and goes down by

17% when the market goes

up. The beta is______________.

(Round to two decimal places.)

c. Calculate the beta of a firm that is expected to go up 4% independently of the market.

The beta is___________.

(Round to two decimal places.)