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

Assignment Help:

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.


Related Discussions:- What does beta measure and how is it interpreted

Origination fees, jack needs to borrow $1000 for the next year. Bank south ...

jack needs to borrow $1000 for the next year. Bank south will give him the loan at 9%. Suncoast will give him the loan at 7% with a $50 loan orgination fee. First national will giv

Opportunity cost or residual loss, Opportunity Cost or Residual Loss I...

Opportunity Cost or Residual Loss It is the cost due to the failure of both parties to act optimally like as in example of A. Lost opportunities because of incapability to

The price jump on its initial day of trading, Following the Initial Public ...

Following the Initial Public Offering (IPO), the shares of Rosetta Stone, the language instruction company, jumped almost 44 percent from an initial price of $18 to $25.55 in late-

Finance , Why do some investors prefer high-dividends paying stocks? Why ,i...

Why do some investors prefer high-dividends paying stocks? Why ,ight other investors prefer low-dividend paying stocks?

calculate the growth rate, The Mountain Fresh Company had earnings per sha...

The Mountain Fresh Company had earnings per share (EPS) of $6.32 in 2006 and $11.48 in 2011. The company pays out 30 percent of its earnings as dividends per share (DPS), and the

Question 7.1, Assume the managers of Fort Winston Hospital are setting the ...

Assume the managers of Fort Winston Hospital are setting the price on a new outpatient service. Here are the relevant data estimates. Variable costs $ 5.00 Annual fixed c

How capital budgeting decisions affect a company’s value, Give an example o...

Give an example of how capital budgeting decisions affect a company's value, strategy or operations. Companies always tend to look for capex projects which will add value to

Comparison a competing firm-analysts earnings estimates, Comparison to a Co...

Comparison to a Competing Firm In Mergent Horizon, return to the competitor page, but now enter the list of competitors "As Defined by the Company."  From this list select a f

Time value of money, One of the projects the US loan would fund is to build...

One of the projects the US loan would fund is to build earthquake-resistant buildings. The project will begin in March 2013, last for two years and is expected to have the followin

Merchant banks - banking institution, Merchant Banks - Banking Institution ...

Merchant Banks - Banking Institution Merchant Banks begun life as merchants and begun to control in financial firms, during the 19 th Century . The merchant banks act like a

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