What does beta measure and how is it interpreted, Finance Basics

The Beta of several industry sectors is shown below.

Industry                                                                                            Beta (β)

Banks                                                                                                   0.78      

Food and staples retailing                                                                       0.65

Materials                                                                                               1.11

Utilities                                                                                                 0.79

Food and Beverage and Tobacco production                                            0.57

Retailing (Discretionaries)                                                                     1.28

elecommunication Services                                                                   0.38

 Part A

What does Beta measure and how is it interpreted? In your answer you should refer to some of the industry measures above.

Part B

How does Beta differ from standard deviation? Explain why companies with a high standard eviation will not necessarily have a high beta.

Posted Date: 3/2/2013 3:04:44 AM | Location : United States







Related Discussions:- What does beta measure and how is it interpreted, Assignment Help, Ask Question on What does beta measure and how is it interpreted, Get Answer, Expert's Help, What does beta measure and how is it interpreted Discussions

Write discussion on What does beta measure and how is it interpreted
Your posts are moderated
Related Questions
new features of insurance?

Percentage of Sales Method - Financial Forecasting This method includes expressing various balance sheet items such are directly concerned to sales as a percentage of sales.

Determine the amount you would be willing to pay for a $1,000 par value bond paying $80 interest each year (annual) and maturing in 12 years, assuming you wanted to earn a 9% rate

$1,000 of insurance had not been used up by January 31. $325 of insurance had been used up in January

Future Ltd is a leading music entertainment company in the country and the stocks of the company are actively traded in the stock exchange. For the year just ended few days back,

Rights of Ordinary Shareholders A. Right to vote Choose BOD Purchase/Sales of assets B. Influence decisions as: Right to residual ass

Draw the network diagram of the following project according to the activity list and relationships mentioned below Table 1 Activity Du

Accounting Exercise AVM 386 Fall 2014 Misty Mark, an infamous archer, decided to open an archery business called Bows and Biceps. The following is a list of transactions for Bows

Instructions 1 This case study counts as part of your group project. 2 Project Group: You must complete this assignment together with the group that you initially registered

Define the term- Origination Origination offers to the work of investigation, analysis and processing of new project proposals. Origination starts before an issue is really