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P8-21 (similar to) Betas Answer the questions below for assets A to D shown in the table: a. What impact would a 21% increase in
P8-21 (similar to) Betas Answer the questions below for assets A to D shown in the table: a. What impact would a 21% increase in the market return be expected to have on each asset's return? b. What impact would a 9% decrease in the market return be expected to have on each asset's return? c. If you believed that the market return would increase in the near future, which asset would you prefer? d. If you believed that the market return would decrease in the near future, which asset would you prefer? 1 Data Table - X he decim and a. 11 (Click on the icon here into a spreadsheet.) in order to copy the contents of the data table below Asset A B D Beta -0.6 1.4 -0.4 0.9
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