(Interpreting Beta) A company wishes to assess the impact of changes in the market return on an asset that has a beta of 1.50.
(a). If the market return increased by 15%, what impact would this change have on the assets return?
(b). If the market decreased by 10%, what impact would this change have on the assets return?
(c). Would this asset be considered more or less risky that the market?
(d). If the market increased by 12% and the return increased by exactly the same amount, what would the new beta for this asset be?