Question
The following table contains beta coefficient estimates for six firms. Calculate the expected increase in the value of each firms shares if the market portfolio
The following table contains beta coefficient estimates for six firms. Calculate the expected increase in the value of each firms shares if the market portfolio were to increase by 10 %. Perform the calculation where the market drops by 10%. which set of firms has the most variable or volatile stock returns? 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 in the market portfolio were to increase by
Company Microsoft Beta Estimate Expected Increase
Apple Inc ( AAPL) 2.63 ......%
Dell Inc ( DELL) 1.81 .....%
Hewlett (HPQ) 1.48 .....%
Utilities
American electric ( AEP ) .75 ....%
Duke Energy ( DUK) .43 ....%
Centerpoint ( CNP) .79 ....%
Input the expected decrease in the value of each firm's shares if the market portfolio were decrease by 10%.
Company Microsoft Money Beta Expected decrease
Apple ( aapl) 2.63 .....%
Dell ( Dell) 1.81 ....%
Hewlett ( HPQ) 1.48 ....%
Utiilities
American ( AEP) .75 ....%
Duke ( DUK ) .43 ....%
Centerpoint (CNP) .79 ....%
Which set of firms has the most variable or volatile stock returns?
A) Computer and software firms
B) Utilities
Apple. Inc. (
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