(Related to Checkpoint 8.3) (Systematic risk and expected rates of return) The following table. . contains beta coefficient estimates for six firms. Calculate the expected increase in the value of each firm's shares if the market portfolio were to increase by 10 percent. Perform the same calculation where the market drops by 10 percent. Which set of firms has the most variable or volatile stock returns? Input the expected increase in the value of each firm's shares if the market portfolio were to increase by 10%. (Round each answer to two decimal places.) Company Yahoo Finance (Yahoo.com) Beta Estimate Expected Increase Data table Apple Inc. (AAPL) Dell Inc. (DELL) Hewlett Packard (HPQ) American Electric Power Co. (AEP) Duke Energy Corp. (DUK) Centerpoint Energy (CNP) Computers and Software 2.69 % Company Yahoo Finance (Yahoo.com) 1.52 96 Computers and Software 1.49 % Apple Inc. (AAPL) 2.69 Utilities Dell Inc. (DELL) 1.52 0.63 % Hewlett Packard (HPQ) 1.49 Utilities 0.59 % American Electric Power Co. (AEP) 0.63 0.98 % Duke Energy Corp. (DUK) 0.59 Centerpoint Energy (CNP) 0.98
(Related to Checkpoint 8.3) (Systematic risk and expected rates of return) The following table. . contains beta coefficient estimates for six firms. Calculate the expected increase in the value of each firm's shares if the market portfolio were to increase by 10 percent. Perform the same calculation where the market drops by 10 percent. Which set of firms has the most variable or volatile stock returns? Input the expected increase in the value of each firm's shares if the market portfolio were to increase by 10%. (Round each answer to two decimal places.) Company Yahoo Finance (Yahoo.com) Beta Estimate Expected Increase Data table Apple Inc. (AAPL) Dell Inc. (DELL) Hewlett Packard (HPQ) American Electric Power Co. (AEP) Duke Energy Corp. (DUK) Centerpoint Energy (CNP) Computers and Software 2.69 % Company Yahoo Finance (Yahoo.com) 1.52 96 Computers and Software 1.49 % Apple Inc. (AAPL) 2.69 Utilities Dell Inc. (DELL) 1.52 0.63 % Hewlett Packard (HPQ) 1.49 Utilities 0.59 % American Electric Power Co. (AEP) 0.63 0.98 % Duke Energy Corp. (DUK) 0.59 Centerpoint Energy (CNP) 0.98
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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unit 8-4
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