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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
(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? Beta Estimate Computers and Software Apple Inc. (AAPL) 2.91 % Dell Inc. (DELL) 1.57 % Data Table Hewlett Packard (HPQ) 1.36 % Utilities American Electric Power Co. (AEP) 0.72 % Microsoft Money Duke Energy Corp. (DUK) 0.57 % Company Central (MSN.com) Centerpoint Energy (CNP) 0.79 % Computers and Software Apple Inc. (AAPL) 2.91 Input the expected decrease in the value of each firm's shares if the market portfolio were to decrease by 10%. (Round eac Dell Inc. (DELL) 1.57 Hewlett Packard (HPQ) 1.36 Microsoft Money Utilities Company Central (MSN.com) Expected Decrease Beta Estimate American Electric Power Co. (AEP) 0.72 Computers and Software Duke Energy Corp. (DUK) 0.57 Apple Inc. (AAPL) 2.91 % 0.79 Centerpoint Energy (CNP) Dell Inc. (DELL) 1.57 Hewlett Packard (HPQ) 1.36 % Print Done Utilities American Electric Power Co. (AEP) 0.72 % Duke Energy Corp. (DUK) Centerpoint Energy (CNP) 0.79 % 0.57 Which set of firms has the most variable or volatile stock returns? (Select the best choice below.)
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