Thompson Home Remodeling has a 1.40 beta. If the overall stock market increases by 4 percent,...

Question

Question

business finance

Answer 1

Answer #1

Answer:-

Given

Thompson home remodeling beta = 1.4
This means it is 1.4 times volatile than the overall market
The overall stock market increases by 4 %

The the stock of Thompson home remodeling could rise change by = beta x increase in stock market = 1.4 x 4% = 5.6 %

Answer 2

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