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
Suppose today's settlement price on a CME DM futures contract is $0.6080/DM. You comprise a short position in one contract. Your margin account at present has a balance of $1,700.

Parties to Mutual Fund Trust As is common to any trust covered under the Indian Trust Act, the parties involved in a mutual fund trust are the sponsor or settler, the trustees,

I need a report on the topic Factors affecting Composition of Working Capital. Can you please assist me?

Read the journal article Lafferty, B. A., & Hult, G. T. M. (2001) ‘A synthesis of contemporary market orientation perspectives’, European Journal of Marketing, 35 (1/2), pp. 92–109

Question 1: The various criteria for evaluating a revenue measure or system are: ? Yield ? Political expediency ? Consistency with economic and social goals ?

If a credit manager experience no bad debt losses over the past year. Would this be an indication of proper credit management? Why or why not

Exchange Rates The prices at which one country's currency can be changed into that of other country. Although perceptions in the currency markets of the privacy of a count

International bonds are divided into two categories namely, foreign bonds and euro bonds. Foreign bonds are issued by a borrowing company in another

Explain the Post-acquisition integration plan Post-acquisition integration plan Keep  all  channels  of communications open,  by  includin

Parity Conditions A parity condition defines the relative value of one country's currency to the other country's currency. The condition states how, for the example, difference