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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
(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%. (Round each answer to two decimal places.) Company Microsoft Money Central (MSN.com) Beta Estimate Expected Increase Apple Inc. (AAPL) Dell Inc. (DELL) Hewlett Packard (HPQ) American Electric Power Co. (AEP) Duke Energy Corp. (DUK) Centerpoint Energy (CNP) Computers and Software 2.51 % 1.51 % 1.35 % Utilities 0.64 % 0.42 % 0.94 % Data table Company Microsoft Money Central (MSN.com) Computers and Software Apple Inc. (AAPL) 2.51 Dell Inc. (DELL) 1.51 Hewlett Packard (HPQ) 1.35 Utilities American Electric Power Co. (AEP) Duke Energy Corp. (DUK) Centerpoint Energy (CNP) (Click on the icon in order to copy its contents into a spreadsheet.) 0.64 0.42 0.94 Print Done -
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