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

Buhoo is an Egyptian company. The outcome of a regression of Buhoo monthly stock rerums against market monthly returns is as follows: ReturnsBuhoo =-1.1%+0.75 Returnss&P 5001.What is the beta estimate for Buhoo?2. Is Buhoo's stock riskier than the market? If Buhoo is riskier than the market, type I 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 5%, estimate Jensen's alpha for Buhoo, in annualized terms4. During the period of the regression, Buhoo was in the Fashion business ONLY and had an average debt-to-equity ratio of 50%. What is the business risk for the fashion business assuming a tax rate of 40%?5. Bunoo is considering investing in the magazine business. The average beta ofTime left 1:58:40 specializing in the magazine business is 1.25, and these firms have an average dbr-10-equiry ratio of 25%; 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 beina in both the fashion and the magazine businesses).7. If Buhoo currently has 5m shares at a 1$ per share and 2m$ 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).

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