Calculation where the market drops by 10 percent

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15. (Systematic risk and expected rates of return) The followin table contains beta coefficient estimates  for six firms. Calculate the expected increase in the value of each firm's shares if the market portfolio  were to increase by 10 percent. Perform the same calculation where the market drops by 10 percent.
Which set of firms has the most variable or volatile stock returns? Input the expected increase in the value of each firm's shares if the market portfolio were to increase by 10%. (round each answer to two decimal places).
Company Yahoo Finance (Yahoo.com) Expected Increase
Computers and Software
Apple Inc. (AAPL) 2.13
Dell Inc. (DELL) 1.56
Hewlett Packard (HPQ) 1.46
Utilities
American Electric Power Co. (AEP) 0.67
Duke Energy Corp. (DUK) 0.37
Centerpoint Energy (CNP) 0.95



Company Yahoo Finance (Yahoo.com) Expected decrease
Computers and Software
Apple Inc. (AAPL) 2.13
Dell Inc. (DELL) 1.56
Hewlett Packard (HPQ) 1.46
Utilities
American Electric Power Co. (AEP) 0.67
Duke Energy Corp. (DUK) 0.37
Centerpoint Energy (CNP) 0.95

Which set of firms has the most variable or volatile stock returns? (Select the best choice below)
Computer and Software firms
Utilities

Reference no: EM13338014

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