Question
The following table shows the returns for the market index (Market - M) and the returns for two stocks (Asset X & Y) under three
The following table shows the returns for the market index (Market - M) and the returns for two stocks (Asset X & Y) under three scenarios. Assume each scenario has an equal chance of occurring (33%).
| Bad | Okay | Good | |
| Market - M | -5% | 5% | 15% |
| Asset - X | -2% | -3% | 25% |
| Asset - Y | -4% | -6% | 30% |
What is the market Beta (b) for asset X? Enter your number to two decimal places. Example 1.05.
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Financial Management Principles And Practice
Authors: Timothy J. Gallagher, Joseph D. Andrew
3rd Edition
0131768824, 978-0131768826
