Question: a. Caculate the expected increase in the value of each firm's shares if the portfolio were to increase by 10 percent. b. Perform the same
a. Caculate the expected increase in the value of each firm's shares if the portfolio were to increase by 10 percent.
b. Perform the same calculation where the market drops by 10 percent.
c.Which set of firms has the most variable or volatile stock returns? Utilities of Computer and Software Firms
| Company | Microsoft Money Central (MSN.com) |
| Computers and Software | |
| Apple Inc. (AAPL) | 2.87 |
| Dell Inc. (DELL) | 1.77 |
| Hewlett Packard (HPQ) | 1.23 |
| Utilities | |
| American Electric Power Co. (AEP) | 0.76 |
| Duke Energy Corp. (DUK) | 0.46 |
| Centerpoint Energy (CNP) | 0.88 |
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