Use the following data to answer the questions that follow.

Company Beta Savoy Corp. 0.830.83

Hokie Industries Beta is 1.191.19

Graham Records Beta is 1.961.96

Expo Enterprises Beta is 0.540.54

S&P 500 Beta is 1.00

a. If the S&P 500 goes up by 21.4921.49 percent, how much should each of the the stocks of Savoy, Hokie, Graham, and Expo change in value?

b. If the stock market drops by 23.0323.03 percent, which one of these stocks should outperform the others? Why?