Question
BetasAnswer the questions below for assets A to D shown in the table: LOADING.... a .What impact would a % increase in the market return
BetasAnswer the questions below for assets A to D shown in the table: LOADING.... 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? Question content area bottom
Part 1 a.If the market return increased by %, the impact to the return of asset A is enter your response here%. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.)
Part 2 If the market return increased by %, the impact to the return of asset B is enter your response here%. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.)
Part 3 If the market return increased by %, the impact to the return of asset C is enter your response here%. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.)
Part 4 If the market return increased by %, the impact to the return of asset D is enter your response here%. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.)
Part 5 b.If the market return decreased by %, the impact to the return of asset A is enter your response here%.(Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.)
Part 6 If the market return decreased by %, the impact to the return of asset B is enter your response here%.(Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.)
Part 7 If the market return decreased by %, the impact to the return of asset C is enter your response here%.(Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.)
Part 8 If the market return decreased by %, the impact to the return of asset D is enter your response here%.(Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.)
Part 9 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.) A. Asset B. Asset C. Asset C D. Asset A
Part 10 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.) A. Asset D B. Asset C. Asset D. Asset B
Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)
Asset | Beta |
|
A | 0.1 | |
B | 1.8 | |
C | 0.5 | |
D | 0.9 |
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