Suppose the market portfolio is equally likely to increase by

15 %

or decrease by

4 %

a. Calculate the beta of a firm that goes up on average by

42 %

when the market goes up and goes down by

5 %

when the market goes

down.

b. Calculate the beta of a firm that goes up on average by

8 %

when the market goes down and goes down by

3 %

when the market goes

up.

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

a. Calculate the beta of a firm that goes up on average by

42 %

when the market goes up and goes down by

5 %

when the market goes

down.