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

20x6 the balances in the several accounts , At the end of March, 20X6 the ...

At the end of March, 20X6 the balances in the several accounts of Nitin & Company are as follows:

What are assumptions of walters dividend model, Q. What are assumptions of ...

Q. What are assumptions of Walters dividend model? 1. Constant Return and Cost of Capital: - The Walter' model presume that the firm's rate of return and its cost of capital ar

Define forward exchange rate will be an unbiased predictor, Explain the con...

Explain the conditions under which the forward exchange rate will be an unbiased predictor of the future spot exchange rate. Answer:  the conditions when forward exchange rate

Explain the marginal cost of capital schedule, What is a marginal cost of c...

What is a marginal cost of capital schedule (MCC)?  Is the schedule all the time a horizontal line?  Explain. The MCC schedule is a graphic depiction of the weighted average cost

Alternative summarised version of tests of controls, Alternative summarised...

Alternative summarised version of tests of controls · Segregation of duty (staff records are separate from wages department) · Documentation ( written evidence ) ·

Explain common methods for controlling translation exposure, It is, usually...

It is, usually, not possible to totally eliminate both translation exposure and transaction exposure.  In few cases, the elimination of one exposure will as well eliminate the othe

Define effect of stock dividends and stock splits, What is the effect of st...

What is the effect of stock (not cash) dividends and stock splits on the market price of common stock?  Why do corporations declare stock splits and stock dividends? Stock splits

Definition of cost of capital, Definition of cost of capital In analyzi...

Definition of cost of capital In analyzing the cost of capital it is presumed that business risk of the firm remains unchanged (i.e., that projects accepted don't affect the va

Disclosures of primary and derivative financial instruments, Assignment Ins...

Assignment Instructions You are to survey the annual reports of five listed companies in the extractive industry sector from ASX or other sources for the most recent year possib

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