Question: Please help I don't have much time!! Anything helps! We assume that the market portfolio has as much probability of increasing by 10% as it
Please help I don't have much time!! Anything helps!
We assume that the market portfolio has as much probability of increasing by 10% as it is of falling by 5%:
a) What is the beta of a security that rises 25% on average when the market is bearish and falls by 5% on average when the market is bullish?
b) What is the beta of a security that rises 20% on average when the market is bullish and falls by 10% on average when the market is bearish?
c) What is the beta of a stock with 33% expected profitability, regardless of market profitability?
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