Interpreting betaA firm wishes to assess the impact of changes in the market return on an asset that has a beta of 1.8.

a.If the market return increased by 14%, what impact would this change be expected to have on theasset's return?

b. If the market return decreased by 9%, what impact would this change be expected to have on theasset's return?

c.If the market return did notchange, whatimpact, ifany, would be expected on theasset's return?

d.Would this asset be considered more or less risky than themarket?

1.If the market return increased by 14%, the impact on theasset's return is .....?%. (Round to one decimal place. Enter a negative percentage number if the asset returndecreases.)

2.If the market return decreased by 9%, the impact on theasset's return is .....?%. (Round to one decimal place. Enter a negative percentage number if the asset returndecreases.)

3.If the market return did notchange, the impact on theasset's return is ....?%. (Round to one decimal place. Enter a negative percentage number if the asset returndecreases.)

4.Would this asset be considered more or less risky than themarket?(Select from thedrop-down menus.)

The asset is(equally risky as, less risky than , more resky than? ) the marketportfolio, which has a beta of (0,- 1, 1 ?).