Beta, Financial Management

Assignment Help:

Beta

Beta is a measure of the market risk, or methodical risk, of a particular privacy or portfolio. Systematic risk defines any risk that influences the value of a huge number of assets. Beta measures a security's return over time relative to the overall market. (Note that market return is mostly measured by Standard & Poor's 500 Composite Stock Index or the Dow Jones 30 Industrials.) The higher the beta, the riskier, or the more volatile, is the stock or portfolio. Beta is commonly used to analyze the risk of equality common funds by showing the volatility of a fund relative to the market as a whole (as measured by the Standard & Poor's 500 Index of the most widely held stocks). A common fund with a beta of 1.0 would have returns that match those of the S&P 500. A common fund with a beta greater than 1.0 is more volatile, or riskier, than the market. A common fund with a beta less than 1.0 is not as risky, volatile, or as the market.


Related Discussions:- Beta

What is the benefits of divestment, What is the Benefits of divestment ...

What is the Benefits of divestment ¸ Releases cash tied up to finance more promising opportunities. ¸ Reduces diversification and complexity of a group in case of a demerger

Calculate the projects payback period, Project Z has a cost of $ 50,000.00,...

Project Z has a cost of $ 50,000.00, its expected net cash flows are $11,000 per year for 8 years, and its cost of capital is 12 % (Hint: begin by constructing a time line). Ins

Commercial mortgage-backed securities (cmbs), These securities are ...

These securities are backed by income-producing real estate, usually in the form of warehouses, shopping centers, apartments, office buildings, senior housi

Healthcare finance, You are considering starting a walk-in-clinic. Your fin...

You are considering starting a walk-in-clinic. Your financial projections for the first year of operation are as follows: Revenues (10,000 visits) $400,000 Wages and benefits $220,

What do you mean by working capital, Q. What do you mean by Working Capital...

Q. What do you mean by Working Capital? Meaning of Working Capital:- Working capital management is a significant aspect of financial management. In business money is necessar

Accounting framework - convention of conservation, Accounting Framework - C...

Accounting Framework - Convention of Conservation Conservatism refers to the principle and practices that are established through way of tradition, reluctance to change from e

Capital budgeting.., Assignment II Describe capital budgeting techniques wi...

Assignment II Describe capital budgeting techniques with formulas and examples.

Explain the cash flow of the volatility, 1. Let's look at the cash flow of ...

1. Let's look at the cash flow of the volatility (variance) spread swap: - ( σ 2 Nasdaq - σ 2 S & P 500 ) N 2 It is noticeable from this expression that investor

Organizational structure of pension funds, Organizational Structure of pens...

Organizational Structure of pension funds In an investment organization such as pension funds, endowments, life and casualty insurance companies, the central bank's investment

Asymmetric cash matching, When a set of predetermined liabilities are given...

When a set of predetermined liabilities are given, the investor must construct a non-callable bond portfolio of homogeneous ratings by considering certain characteris

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd