A -.4

B 1.2

C .1

d .7

BetasAnswer the questions below for assets A to D shown in thetable: LOADING...

.

a.What impact would a 22

22% increase in the market return be expected to have on eachasset's return?

b.What impact would a 10

10% decrease in the market return be expected to have on eachasset's return?

c. If you believed that the market return would increase in the nearfuture, which asset would youprefer?

d. If you believed that the market return would decrease in the nearfuture, which asset would youprefer?

a.If the market return increased by 22

22%, the impact to the return of asset A is

nothing

%. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in thereturn.)

If the market return increased by 22

22%, the impact to the return of asset B is

nothing

%. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in thereturn.)

If the market return increased by 22

22%, the impact to the return of asset C is

nothing

%. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in thereturn.)

If the market return increased by 22

22%, the impact to the return of asset D is

nothing

%. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in thereturn.)

b.If the market return decreased by 10

10%, the impact to the return of asset A is

nothing

%.(Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in thereturn.)

If the market return decreased by 10

10%, the impact to the return of asset B is

nothing

%.(Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in thereturn.)

If the market return decreased by 10

10%, the impact to the return of asset C is

nothing

%.(Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in thereturn.)

If the market return decreased by 10

10%, the impact to the return of asset D is

nothing

%.(Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in thereturn.)

c. If you were certain that the market return would increase in the nearfuture, which asset would youprefer?(Select the best answerbelow.)

A.

Asset A

B.

Asset B

C.

Asset C

D.

Asset r D

d. If you were certain that the market return would decrease in the nearfuture, which asset would youprefer?(Select the best answerbelow.)

A.

Asset A

A

B.

Asset B

C.

Asset D

D.

Asset c