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(Related to Checkpoint 8.3) (Systematic risk and expected rates of return) The following table contains beta coefficient estimates for six firms. Calculate the expected increase

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(Related to Checkpoint 8.3) (Systematic risk and expected rates of return) The following table contains beta coefficient estimates for six firms. Calculate the expected increase in the value of each firm's shares if the market portfolio were to increase by 10 percent. Perform the same calculation where the market drops by 10 percent. Which set of firms has the most variable or volatile stock returns? Input the expected increase in the value of each firm's shares if the market portfolio were to increase by 10% X i Data Table Microsoft Money Central (MSN.com) Company Expected Increase Beta Estimate Microsoft Money Central (MSN.com) Computers and Software Company 2.39 Apple Inc. (AAPL) Computers and Software Dell Inc. (DELL) 1.78 Apple Inc. (AAPL) Dell Inc. (DELL) Hewlett Packard (HPQ) 2.39 Hewlett Packard (HPQ) 1.33 1.78 Utilities 1.33 Utilities American Electric Power Co. (AEP) 0.68 American Electric Power Co. (AEP) 0.68 Duke Energy Corp. (DUK) 0.57 Duke Energy Corp. (DUK) 0.57 Centerpoint Energy (CNP) 0.77 0.77 Centerpoint Energy (CNP) (Related to Checkpoint 8.3) (Systematic risk and expected rates of return) The following table contains beta coefficient estimates for six firms. Calculate the expected increase in the value of each firm's shares if the market portfolio were to increase by 10 percent. Perform the same calculation where the market drops by 10 percent. Which set of firms has the most variable or volatile stock returns? Input the expected increase in the value of each firm's shares if the market portfolio were to increase by 10% X i Data Table Microsoft Money Central (MSN.com) Company Expected Increase Beta Estimate Microsoft Money Central (MSN.com) Computers and Software Company 2.39 Apple Inc. (AAPL) Computers and Software Dell Inc. (DELL) 1.78 Apple Inc. (AAPL) Dell Inc. (DELL) Hewlett Packard (HPQ) 2.39 Hewlett Packard (HPQ) 1.33 1.78 Utilities 1.33 Utilities American Electric Power Co. (AEP) 0.68 American Electric Power Co. (AEP) 0.68 Duke Energy Corp. (DUK) 0.57 Duke Energy Corp. (DUK) 0.57 Centerpoint Energy (CNP) 0.77 0.77 Centerpoint Energy (CNP)

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