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Suppose the market portfolio is equally likely to increase by or decrease by . a. Calculate the beta of a firm that goes up on

Suppose the market portfolio is equally likely to increase by or decrease by .

a. Calculate the beta of a firm that goes up on average by when the market goes up and goes down by when the market goes down.

b. Calculate the beta of a firm that goes up on average by when the market goes down and goes down by when the market goes up.

c. Calculate the beta of a firm that is expected to go up 4% independently of the market.

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