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Betas Answer the questions below for assets A to D shown in the table: a . What impact would a 1 1 % increase in
Betas Answer the questions below for assets to shown in the table:
a What impact would a increase in the market return be expected to have on each asset's return?
b What impact would a 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?
a If the market return increased by the impact to the return of asset is Rour return.
If the market return increased by the impact to the return of asset is Round return.
If the market return increased by the impact to the return of asset is Round return.
If the market return increased by the impact to the return of asset is Round return.
b If the market return decreased by the impact to the return of asset is Roun return.
If the market return decreased by the impact to the return of asset is Round return.
If the market return decreased by the impact to the return of asset is Round return. return.
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.
Data table
Click on the icon here in order to copy the contents of the data table below into a spreadsheet.
tableAssetBetaABCD
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