Suppose the market portfolio is equally likely to increase by 30% or decrease by 10%.
a) Calculate the beta of a firm that goes up on average by 43% when the market goes up and goes down by 17% when the market goes down?
b) Calculate the beta of firm that goes up on average by 18% when the market goes down by 22% when the market goes up.
c) Calculate the beta of a firm that is expected to go up by 4% independently of the market.