Question
Interpreting beta???A firm wishes to assess the impact of changes in the market return on an asset that has a beta of 0.80.8. a.??If the
Interpreting beta???A firm wishes to assess the impact of changes in the market return on an asset that has a beta of 0.80.8. a.??If the market return increased by 1515?%, what impact would this change be expected to have on the? asset's return? b. If the market return decreased by 66?%, what impact would this change be expected to have on the? asset's return? c.??If the market return did not? change, what? impact, if? any, would be expected on the? asset's return? d.??Would this asset be considered more or less risky than the? market? a.??If the market return increased by 1515?%, the impact on the? asset's return is nothing?%. ?(Round to one decimal place. Enter a negative percentage number if the asset return? decreases.) b.??If the market return decreased by 66?%, the impact on the? asset's return is nothing?%. ?(Round to one decimal place. Enter a negative percentage number if the asset return? decreases.) c.??If the market return did not? change, the impact on the? asset's return is nothing?%. ?(Round to one decimal place. Enter a negative percentage number if the asset return? decreases.) d.??Would this asset be considered more or less risky than the? market????(Select from the? drop-down menus.) The asset is ? less risky than more risky than equally risky as the market? portfolio, which has a beta of ? .
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