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7 Interpreting beta A firm wishes to assess the impact of changes in the market return on an asset that has a beta of 1.4.

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Interpreting beta A firm wishes to assess the impact of changes in the market return on an asset that has a beta of 1.4. a. If the market return increased by 12%, what impact would this change be expected to have on the asset's return? b. If the market return decreased by 7%, what impact would this change be expected to have on the asset's return? c. If the market return did not change, what impact, if any, would be expected on the asset's return? d. Would this asset be considered more or less risky than the market? %. (Round to one decimal place. Enter a negative percentage number if the asset a. If the market return increased by 12%, the impact on the asset's return is return decreases.)

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