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Use the following data to answer the questions that follow.
| Company | Beta |
| Savoy Corp. | 0.89 |
| Hokie Industries | 1.58 |
| Alison Records | 2.21 |
| Expo Enterprises | 0.41 |
| S&P 500 | 1.00 |
a. If the S&P 500 goes up by
8.76
percent, how much should the stocks of Savoy, Hokie, Alison, and Expo change in value?b. If the stock market drops by
15.39
percent, which one of these stocks should outperform the others? Why?
a. If the S&P 500 goes up by 8.76 percent, the stock of Savoy would change in value by %. (Round to two decimal places.)
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