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Betas Answer the questions below for assets A to D shown in the table: B a. What impact would a 11% increase in the market
Betas Answer the questions below for assets A to D shown in the table: B a. What impact would a 11% increase in the market return be expected to have on each asset's return? b. What impact would a 8% decrease in the market return be expected to have on each asset's return? c. If you believed that the market return would increase in the near future, which asset would you prefer? d. If you believed that the market return would decrease in the near future, which asset would you prefer? Data Table a. If the market return increased by 11%, the impact to the return of asset Ais %. (Round to one decimal place If the market return increased by 11%, the impact to the return of asset B is %. (Round to one decimal place. Et If the market return increased by 11%, the impact to the return of asset C is %. (Round to one decimal place. El (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) If the market return increased by 11%, the impact to the return of asset Dis%. (Round to one decimal place. El b. If the market return decreased by 8%, the impact to the return of asset Ais %. (Round to one decimal place. Asset A B Beta 0.4 1.3 0.1 1.6 If the market return decreased by 8%, the impact to the return of asset B is %. (Round to one decimal place. En If the market return decreased by 8%, the impact to the return of asset C is %. (Round to one decimal place. Er If the market return decreased by 8%, the impact to the return of asset Dis[%. (Round to one decimal place. Er Print Done c. If you were certain that the market return would increase in the near future, which asset would you prefer? (Select the best answer below.) O A. Asset A OB. Asset D O C. Asset B OD. Asset C d. If you were certain that the market return would decrease in the near future, which asset would you prefer? (Select the best answer below.)
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