10-6 Measuring Market Risk Example - continued S When the market was up 1%, Turbo average %o change was +0. 8% o When the market was down 1%. Turbo average %o change was.8% O The average change of 1.6%(-0.8 to 0.8) divided by the 2%(1.0 to 1.0)change in the market produces a beta of 0. 8 Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 10- 6 Irwin/McGraw-Hill Measuring Market Risk When the market was up 1%, Turbo average % change was +0.8% When the market was down 1%, Turbo average % change was -0.8% The average change of 1.6 % (-0.8 to 0.8) divided by the 2% (-1.0 to 1.0) change in the market produces a beta of 0.8. Example - continued