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

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(Related to Checkpoint 8.3) (Systematic risk and expected rates of return) The following table, e, 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%. i Data Table - X Company Expected Increase Microsoft Money Central (MSN.com) Beta Estimate Computers and Software 2.39 1.78 1.33 Company Microsoft Money Central (MSN.com) Apple Inc. (AAPL) Dell Inc. (DELL) Hewlett Packard (HPQ) 2.39 1.78 1.33 Utilities Computers and Software Apple Inc. (AAPL) Dell Inc. (DELL) Hewlett Packard (HPQ) Utilities American Electric Power Co. (AEP) Duke Energy Corp. (DUK) Centerpoint Energy (CNP) American Electric Power Co. (AEP) Duke Energy Corp. (DUK) Centerpoint Energy (CNP) 0.68 0.57 0.68 0.57 0.77 0.77

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