Use the following data to answer the questions that follow. Company Beta Savoy Corp..0.70 Hokie Industries .1.35

Question:

Use the following data to answer the questions that follow.
Company Beta
Savoy Corp……………………………..0.70
Hokie Industries ……………………….1.35
Graham Records ……………………….2.05
Expo Enterprises ……………………….0.45
S&P 500 ……………………………….1.00
a. If the S&P 500 goes up by 15 percent, how much should the of Savoy, Hokie, Graham, and Expo change in value?
b. If the stock market drops by 10 percent, which one of these should outperform the others? Why? Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...