10-7 Measuring Market Risk Example - continued O When the market was up 1%, Turbo average %o change was +0.8% s When the market was down 1%o. Turbo average change was -0.8% OThe average change of 1.6%o(-08 to 0.8) divided by the 2%(-1.0 to 1.0)change in the market produces a beta of 0.8 B 2 0.8 Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 10- 7 Irwin/McGraw-Hill Measuring Market Risk B = = 0.8 1.6 2 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