use the following data to answer the question that follow. Company. Beta ——————————— Savoy Corp. 0.63 Hokie Industries. 1.58 Graham Records....

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usethe following data to answer the question that follow.
Company. Beta
———————————
Savoy Corp. 0.63
Hokie Industries. 1.58
Graham Records. 1.83
Expo Enterprises. 0.44
S&P 500. 1.00
———————————

A. If the S&P 500 goes up by 22.59 percent, how muchshould the stocks of Savoy, Hokie, Graham, and Expo change inValue?
B. If the stock market drops by 21.03 percent, which one ofthese stocks should outperform the others? Why?

a. if the S&P 500 goes up by 22.59 percent, the stock ofsavoy would change in value by ____% (round to two decimalplaces.)

Answer & Explanation Solved by verified expert
4.2 Ratings (875 Votes)
A The calculation of changes in value of Savoy Hokie Graham and Expo is as follows If the SP 500 goes up by 2259 then Savoy Corp would increase by 063 x 2259 1423    See Answer
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usethe following data to answer the question that follow.Company. Beta———————————Savoy Corp. 0.63Hokie Industries. 1.58Graham Records. 1.83Expo Enterprises. 0.44S&P 500. 1.00———————————A. If the S&P 500 goes up by 22.59 percent, how muchshould the stocks of Savoy, Hokie, Graham, and Expo change inValue?B. If the stock market drops by 21.03 percent, which one ofthese stocks should outperform the others? Why?a. if the S&P 500 goes up by 22.59 percent, the stock ofsavoy would change in value by ____% (round to two decimalplaces.)

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