For beta to provide useful insight, the market used as abenchmark should be relatedto the stock. For example, a bond ETF's beta with the S&P 500 as the benchmark would not be helpful to an investor because bonds and stocks are too dissimilar. Beta coefficient(β)=Covariance(Re,Rm)Varia...
Beta allows for a good comparison between an individual stock and a market-trackingindex fund, but it doesn’t offer a complete portrait of a stock’s risk. Instead, it’s a look at its level of volatility, and it’s important to note that volatility can be good and bad. Investors are...
For beta to provide useful insight, the market used as abenchmark should be relatedto the stock. For example, a bond ETF's beta with the S&P 500 as the benchmark would not be helpful to an investor because bonds and stocks are too dissimilar. ...
正确答案:A 分享到: 答案解析: RRStock = Rf + (RMarket - Rf)× BetaStock, where RR= required return, R = return, and Rf = risk-free rate. Here, RRStock = 6 + (12 - 6) × 1.2 = 6 + 7.2 = 13.2%. 统计:共计87人答过,平均正确率96.55% 问题:进入高顿部落发帖帮助相似...
beta stock. High-beta stocks may be riskier, but provide the potential for higher returns. If a stock moves less than theoverall markets volatility,that stock is a low-beta stock with a measurement of less than 1.0. Low-beta stocks pose less risk, but bring the potential for lower ...
百度试题 题目 What is the expected return of a stock that has a beta of 3.5 when the expected market return is 8% and the current risk-free rate is 4%? 相关知识点: 试题来源: 解析 22% 反馈 收藏
aold file not found. however, a file of the same name was 没被发现的老文件。 然而,同一个名字的文件是[translate] aIf the risk-free rate is 6% and the market risk premium is also 6% What is the stock’s beta? 如果无风险的率是6%,并且市场风险保险费是否是也6%什么是股票的beta ?[transl...
A stock has a beta of 0.What does this mean?___.A.The stock will fall on average by half as much as the market.B.The stock will fall and rise by twice as much as the market.C.Every time there is a price movement, the stock will rise or fall by half as
Answer to: Stock A's beta is 1.5 and Stock B's beta is 0.5. What must be true, assuming the CAPM is correct? By signing up, you'll get thousands of...
What are Equity Beta and Asset Beta? Levered beta, also known as equity beta or stock beta, is the volatility of returns for a stock, taking into account the impact of the company’s leverage from its capital structure. It compares the volatility (risk) of a levered company to the risk...