Calculate the beta of firm that goes up on average

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Suppose the market portfolio is equally likely to increase by 26 % or decrease by 9%.

a. Calculate the beta of a firm that goes up on average by 20% when the market goes up and goes down by 15% when the market goes down.

b. Calculate the beta of a firm that goes up on average by 16% when the market goes down and goes down by 20% when the market goes up.

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

Reference no: EM131899962

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