1.The stock of the Goldy Corporation has a beta of -0.25.

1.The stock of the Goldy Corporation has a beta of -0.25. If the expected
return on the market decreases by 4%, then the expected return on Goldy should
Question 6 options:

increase by 1%

decrease by 1%

increase by 1.6%

decrease by 1.6%

2.You have analyzed four stocks and obtained the following results:
Stock Return Standard Beta
K 22% 35% 2.8
I 10% 17% 0.8
N 8% 15% 0.2
G 10% 13% 0.5
Refer to the information above. A risk-averse investor, who will be adding the stock to his already well-diversified portfolio, would choose to invest in Stock

3.Your firm uses 30% debt financing and 70% equity financing. The beta of the debt is 0.1 and the beta of the equity is 1.4. What is your firm’s asset beta?

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