Interpreting beta

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Interpreting beta

A ?rm wishes to assess the impact of changes in the market retum on an asset that has a beta of 1.2.

a. If the market retum increased by 15%, what impact would this change he expected to have on the assets return? it.

b. If the market return decreased by 3%, what impact woutd this change be expected to have on the asset's return? no.

c. If the market retum did not change. what impact, if any, would be expected on the asset's retum?

d. Would this asset be considered more or less riskyr than the market?

Reference no: EM133069341

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