a. Calculate the change in retur Security A's change in return w Data table Security A (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.) BC с Print Beta 1.63 0.62 -0.24 10.001 Done - X iod.
a. Calculate the change in retur Security A's change in return w Data table Security A (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.) BC с Print Beta 1.63 0.62 -0.24 10.001 Done - X iod.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question

Transcribed Image Text:a. Calculate the change in retur
Security A's change in return w
Data table
(Click on the icon here in order to copy its contents of the data table below into
a spreadsheet.)
Security
A
BC
Print
Beta
1.63
0.62
-0.24
---n
Done
X
iod.

Transcribed Image Text:↑
Assume the betas for securities A, B, and C are as shown here: BB.
a. Calculate the change in return for each security if the market experiences an increase in its rate of return of 12.9% over the next period.
b. Calculate the change in return for each security if the market experiences a decrease in its rate of return of 9.8% over the next period.
c. Rank and discuss the relative risk of each security on the basis of your findings. Which security might perform best during an economic downturn? Explain.
...
a. Calculate the change in return for each security if the market experiences an increase in its rate of return of 12.9% over the next period.
Security A's change in return will be %. (Round to two decimal places.)
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