Buhoo is an Egyptian company. The outcome of a regression of Buhoo monthly stock returns against market monthly returns is as follows:

ReturnSBuhoo $=-1\mathrm{.}3\%+0\mathrm{.}9$

Returnss&p $500$

$1.$ What is the beta estimate for Buhoo?

$2.$ Is Buhoo's stock riskier than the market?

If Buhoo is riskier than the market, type $1$ in the answer box.

If Buhoo is less risky than the market, type $2$ in the answer box.

If you need more information to answer

this question, type $3$ in the answer box.

$3.$ If the average risk$-$free rate during the regression period was $4\%,$ estimate Jensen's alpha for Buhoo, in annualized terms.

$4.$ During the period of the regression, Buhoo was in the Fashion business ONLY and had an average debt$-$to$-$equity ratio of $60\%.$ What is the business risk for the fashion business assuming a tax rate of $40\%?$

$5.$ Buhoo is considering investing in the magazine business. The average beta of firms specializing in the magazine business is $1\mathrm{.}3,$ and these firms have an average debt$-$to$-$equity ratio of $30\%$; they face an average tax rate of $35\%.$

Estimate the business risk $($unlevered beta$)$ for the magazine business.

$6.$ Buhoo expects that half of its future revenues and earnings will come from the magazine business.

Estimate the unlevered beta for Buhoo looking forward $($that is for being in both the fashion and the magazine businesses$).$

$7.$ If Buhoo currently has $8$m shares at a $1$$ per share and $3$m$ debt, and plans to maintain the same debt to equity ratio for the foreseeable future, estimate the beta for Buhoo looking forward $($that is for being in the fashion and magazine businesses$).$