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Ford Motor Company has a beta of 1.55. If the overall stock market increases by 6 percent, based on this information, how muc

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Answer #1

Beta of Ford Motor company = 1.55

Overall market increased = 6%

The investor should assume that ford will increase = Overall market increased * Beta of Ford company

= 6% * 1.55 = 9.3%

Beta is measure of systematic risk or volatility of the stock and how much it is volatile in comparison of market.

Therefore volatility for Ford Motor company stock = 1.55

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