Finance-interpreting beta

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Finance - Interpreting Beta

Schembri Investment Company Limited wishes to assess the impact of changes in the market return on an asset that has a beta of 0.8

A) If the market return increased by 42%, what impact would this change be expected to have on the assets return?

B) If the market return decreased by 32%, what impact would this change be expected to have on the asset's return?

C) If the market did not change, what impact, if any, would be expected on the assets return?

D) Would this asset be considered more or less risky than the market? Explain?

Reference no: EM131533883

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