The beta of a firm, Financial Management

Suppose the market portfolio is equally likely to increase by 30% or decrease by 10%.

a.    Calculate the beta of a firm that goes up on average by 43% when the market goes up and goes down by 17% when the market goes down.

b.    Calculate the beta of a firm that goes up on average by 18% when the market goes down and goes down by 22% when the market goes up.

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

Posted Date: 3/14/2013 1:58:24 AM | Location : United States







Related Discussions:- The beta of a firm, Assignment Help, Ask Question on The beta of a firm, Get Answer, Expert's Help, The beta of a firm Discussions

Write discussion on The beta of a firm
Your posts are moderated
Related Questions
Q. What do you mean by Working Capital? Meaning of Working Capital:- Working capital management is a significant aspect of financial management. In business money is necessar

Basics of  Callable Bonds A callable bond is a convertible bond with the favorable feature of call option available to the issuer. When the fir

SCL Ltd., a highly profitable company, is engaged in the manufacture of power intensive products. As part of its diversification plans, the company proposes to put up a windmill to

What does the “weight” refer to in the weighted average cost of capital? The weight considered to in weighted average cost of capital consider the portion of the total capital in

Question- Under a hire purchase deal structured by X Finance Ltd. for Y Corporation, the finance company has offered to finance the purchase of equipment that costs Rs. 200 lakh.

Evaluation: Once all the possible events are identified, the next step in the risk management process is to evaluate the events. As stated previously, the evaluation process wo

Stream of Expected Returns Investment returns can take many forms. An investor must consider all these forms to evaluate an investment option accurately. A brief description of

Explain official reserve assets and its major components. Answer:  Official reserve assets are those financial assets which can be employed as international means of payments.

Exam technique for analysing performance The below steps must be adopted when answering a question on analysing performance: Step 1    Review figures as they are and commen

VK Ltd a multi-product Company, furnishes you the following data relating to theyear 2000.First Half of the year Second Half of the yearSales Rs. 45,000 Rs. 50,000 Total Cost Rs. 4