Question: Table 8 1 contains beta coefficient estimates for six firms and
Table 8.1 contains beta coefficient estimates for six firms and from two different sources. Calculate the expected increase in the value of each firm’s shares if the market portfolio were to increase by 10 percent (use either the Yahoo Finance or Microsoft Money Central beta estimates). Perform the same calculation where the market drops by 10 percent. Which set of firms has the most variable or volatile stock returns?
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