The following table, contains beta coefficient estimates for six firms. Calculate the expected increase in...
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Accounting
The following table, contains beta coefficient estimates for six firms. Calculate the expected increase in the value of each firms shares if the market portfolio were to increase by 10 percent. Perform the same calculation, where the market drops by 10 percent. Which set of firms has the most variable or volatile stock returns?
| Company | Microsoft Money Central (MSN.com) |
| Computers and Software | |
| Apple Inc. (AAPL) | 2.48 |
| Dell Inc. (DELL) | 1.43 |
| Hewlett Packard (HPQ) | 1.39 |
| Utilities | |
| American Electric Power Co. (AEP) | 0.76 |
| Duke Energy Corp. (DUK) | 0.57 |
| Centerpoint Energy (CNP) | 0.92 |
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