ASSET BETA

A -0.4

B 1.6

C 0.4

D 1.2

a.) What impact would 16% increase in the market return be expected to have on each asste return?

b.) What impact would a 12% decrease in the market return be expected to have on each assets return?

c.) If it was believed that market return would increase in the near future which asset would you prefer?

d.) If it was believed that market return would decrease in the near future, which asset would you prefer?

Asset Beta 1.6 Ooo >>