Solution-How much do we expect xtc to change

How much do we expect xtc to change

Reference no: EM132696247

1.) XTC Inc. has a beta = 1.05. Is this stock more risky or less risky than the market as a whole? If the market index increases in value by 15%, by how much do we expect XTC to change?

2.) MXC Inc. has a beta = 0.91. Is this stock more risky or less risky than the market as a whole? If the market index decreases in value by 11%, by how much do we expect XTC to change?

3.) You are considering three investments: A, B, and C. Their correlations are: ρA,B = 0.75; ρB,C = 0.19; ρA,C = 0.42. Which two investments held together would provide the most efficient diversification?

Reference no: EM132696247

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How much do we expect xtc to change

Reference no: EM132696247

Reference no: EM132696247

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