Interpreting beta A firm wishes to assess the impact of changes in the market retum on...
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Interpreting beta A firm wishes to assess the impact of changes in the market retum on an asset that has a beta of 1.2. a. b. If the market return increased by 22%, what impact would this change be expected to have on the asset's return? If the market return decreased by 7%, what impact would this change be expected to have on the asset's retum? c. If the market return did not change, what impact, if any, would be expected on the asset's return? d. Would this asset be considered more or less risky then the market? a. If the market return increased by 22%, the impact on the asset's ratum is %. (Round to one decimal place. Enter a negative percentage number if the asset return decreases.) Interpreting beta A firm wishes to assess the impact of changes in the market retum on an asset that has a beta of 1.2. a. b. If the market return increased by 22%, what impact would this change be expected to have on the asset's return? If the market return decreased by 7%, what impact would this change be expected to have on the asset's retum? c. If the market return did not change, what impact, if any, would be expected on the asset's return? d. Would this asset be considered more or less risky then the market? a. If the market return increased by 22%, the impact on the asset's ratum is %. (Round to one decimal place. Enter a negative percentage number if the asset return decreases.)
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