The beta of a firm, Financial Management

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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


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