A US Firm Has Invested in a Project in Switzerland That

question 39

Essay

A U.S. firm has invested in a project in Switzerland that has a beta of 0.9 relative to the
Swiss stock market. Assume that the beta of the Swiss market relative to the U.S.
market is 0.65 and that the market beta of the $/Swiss franc exchange rate movements
is 0.0. What would you expect the beta of the Swiss project relative to the U.S. market
to be?

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Definitions:

Personality Factor

Aspects of an individual's character or psychological makeup that affect behavior and attitudes.

Agreeableness

A trait of personality defined by the presence of empathy, a willingness to collaborate, and the motivation to sustain harmonious social connections.

Big Five

A model outlining five major dimensions of human personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Intellectual Agreeableness

The quality of being easy to communicate with and willing to entertain diverse ideas and viewpoints, contributing to harmonious discourse.