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If the market index increased by 9.4 % during a period, a stock with a beta of 1.3 would be expected to (increase or decrease)
If the market index increased by 9.4 % during a period, a stock with a beta of 1.3 would be expected to (increase or decrease) _____________% during this same period? Ignore the risk free rate in calculating your answer (i.e. assume rf=0) Calculate the expected change in return to the nearest .1%. If the change is a decrease be sure to use a - sign. If the change is an increase, enter the number without a + sign.
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