50.1K

Verified Solution

Link Copied!

please answer all parts and round one decimal place

Interpreting beta A firm wishes to assess the impact of changes in the market return on an asset that has a beta of 11 a. If the market return increased by 15%, what impact would this change be expected to have on the asset's return? b. If the market return decreased by 10%, what impact would this change be expected to have on the asset's return? c. If the market return did not change, what impact, if any, would be expected on the asset's return? d. Would this asset be considered more or less risky than the market? this change bebe return did not chay 10%, what impact a. If the market return increased by 15%, the impact on the asset's return is return decreases.) %. (Round to one decimal place. Enter a negative percentage number of the asset b. If the market return decreased by 10%, the impact on the asser's return is 1% (Round to one decimal place Enter a negative percentage number if the asset return decreases.) c. If the market return did not change, the impact on the asset's return is % (Round to one decimal place. Enter a negative percentage number if the asset return decreases.) d. Would this asset be considered more or less risky than the market? (Select from the drop-down menus) The asset is M the market portfoto, which has a bets of more risky than equally risky as less risky than

Answer & Explanation Solved by verified expert

See Answer