Betas Answer the questions below for assets A to D shown in the table: a. What impact would a 11% increase in the market return be expected to have on each asset's return? b. What impact would a 7% decrease in the market return be expected to have on each asset's return? c. If you believed that the market return would increase in the near future, which asset would you prefer? d. If you believed that the market return would decrease in the near future, which asset would you prefer? a. If the market return increased by 11%, the impact to the return of asset A is %. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.) If the market return increased by 11%, the impact to the return of asset B is %. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.) If the market return increased by 11%, the impact to the return of asset C is %. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.) If the market return increased by 11%, the impact to the return of asset D is %. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.) b. If the market return decreased by 7%, the impact to the return of asset A is %. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.) If the market return decreased by 7%, the impact to the return of asset B is %. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.) If the market return decreased by 7%, the impact to the return of asset C is %. (Round to one decimal place. Enter a nositive nercentage for an increase and a negative for a decrease in the return \ Betas Answer the questions below for assets A to D shown in the table: If the market return decreased by 7%, the impact to the return of asset C is %. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.) If the market return decreased by 7%, the impact to the return of asset D is %. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.) c. If you were certain that the market return would increase in the near future, which asset would you prefer? (Select the best answer below.) A. Asset A B. Asset C C. Asset B D. Asset D d. If you were certain that the market return would decrease in the near future, which asset would you prefer? (Select the best answer below.) ○ A. Asset C B. Asset D OC. Asset A D. Asset B

Betas Answer the questions below for assets A to D shown in the table: a. What impact would a 11% increase in the market return be expected to have on each asset's return? b. What impact would a 7% decrease in the market return be expected to have on each asset's return? c. If you believed that the market return would increase in the near future, which asset would you prefer? d. If you believed that the market return would decrease in the near future, which asset would you prefer? a. If the market return increased by 11%, the impact to the return of asset A is %. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.) If the market return increased by 11%, the impact to the return of asset B is %. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.) If the market return increased by 11%, the impact to the return of asset C is %. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.) If the market return increased by 11%, the impact to the return of asset D is %. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.) b. If the market return decreased by 7%, the impact to the return of asset A is %. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.) If the market return decreased by 7%, the impact to the return of asset B is %. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.) If the market return decreased by 7%, the impact to the return of asset C is %. (Round to one decimal place. Enter a nositive nercentage for an increase and a negative for a decrease in the return \ Betas Answer the questions below for assets A to D shown in the table: If the market return decreased by 7%, the impact to the return of asset C is %. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.) If the market return decreased by 7%, the impact to the return of asset D is %. (Round to one decimal place. Enter a positive percentage for an increase and a negative for a decrease in the return.) c. If you were certain that the market return would increase in the near future, which asset would you prefer? (Select the best answer below.) A. Asset A B. Asset C C. Asset B D. Asset D d. If you were certain that the market return would decrease in the near future, which asset would you prefer? (Select the best answer below.) ○ A. Asset C B. Asset D OC. Asset A D. Asset B

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter25: Portfolio Theory And Asset Pricing Models

Section: Chapter Questions

Problem 4P

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