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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? Input the expected increase in the value of each firm's shares if the market portfolio were to increase by 10%. (Rr Microsoft Money Central (MSN.com) Data Table Company Expected Increase Beta Estimate Computers and Software Microsoft Money Central (MSN.com) % Apple Inc. (AAPL) 2.29 Company Dell Inc. (DELL) % 1.69 Computers and Software Hewlett Packard (HPQ) 1.44 Apple Inc. (AAPL) Dell Inc. (DELL) Hewlett Packard (HPQ) 2.29 1.69 Utilities 1.44 American Electric Power Co. (AEP) 0.63 Utilities Duke Energy Corp. (DUK) % 0.49 American Electric Power Co. (AEP) 0.63 Duke Energy Corp. (DUK) 0.49 Centerpoint Energy (CNP) 0.93 0.93 Centerpoint Energy (CNP)
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