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Expected change in firm stock price

A company's beta is -1.5. If the overall stock market decreases by 5%, what is the expected change in the firm's stock price?

A. Share price decreases by 5%

B. Share price decreases by 6.5%

C. Share price increases by 7.5%

D. Share price decreases by 7.5%

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Finance Basics: Expected change in firm stock price

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Expected change in firm stock price

Reference No:- TGS0559202

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What is the firm dividend

Q : After-tax preferred yield for selten

Q : Projected value of the card

Q : Inventory account reflects the cost of goods

Q : Expected change in firm stock price

Q : Find value of perpetuities for long-term interest rate

Q : Compute the profit margin on sales

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Q : Determine net purchases and ending inventory

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Expected change in firm stock price

Reference No:- TGS0559202

Recent Questions Asked Finance Basics

Q : What is the firm dividend

Q : After-tax preferred yield for selten

Q : Projected value of the card

Q : Inventory account reflects the cost of goods

Q : Expected change in firm stock price

Q : Find value of perpetuities for long-term interest rate

Q : Compute the profit margin on sales

Q : Calculate the total amount of cash and cash equivalents

Q : Determine net purchases and ending inventory

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