Suppose the market portfolio is equally likely to increase by 18% or decrease by 18%. a. Calculate the beta of a firm th

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answerhappygod
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Suppose the market portfolio is equally likely to increase by 18% or decrease by 18%. a. Calculate the beta of a firm th

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Suppose the market portfolio is equally likely to increase by
18% or decrease by 18%.
a. Calculate the beta of a firm that goes up on average by 39% when
the market goes up and goes down by 24%
when the market goes down.
b. Calculate the beta of a firm that goes up on average by 22% when
the market goes down and goes down by 29%
when the market goes up.
C. Calculate the beta of a firm that is expected to go up 4%
independently of the market.
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