1) Suppose there are three firms, their information are as following: Company Beta A 1.3 B 1.00 C 0.8 a. How do you inte
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1) Suppose there are three firms, their information are as following: Company Beta A 1.3 B 1.00 C 0.8 a. How do you inte
1) Suppose there are three firms, their information are as following: Company Beta A 1.3 B 1.00 C 0.8 a. How do you interpret these betas? (3 marks) b. Is it reasonable to assume that the expected return on firm C is less than that on firm A's shares? (3marks) c. Given that firm B has a Beta of 1.00, one can mimic the performance of the stock market as a whole by buying only these shares. Do you agree with this statement? (4 marks)
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