Beta is a way of measuring a stock’s volatility compared with the overall market’s volatility. By definition, the market as a whole has a beta of 1, and everything else is defined in relation to that: Stocks with a value greater than 1are more volatile than the market, meaning they ...
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...
Question: A stock has a beta of 1.13, the expected return on the market is 10.7% and risk-free rate is 4.6%. What is the expected return? CAPM: CAPM stands for the capital asset pricing model. This approach helps to determine the ...
a) Delta is the yield in terms of a dividend of the underlying asset that describes the options life of the binomial option pricing model. It helps to...Become a member and unlock all Study Answers Start today. Try it now Cre...
Cash effectively has a beta of zero, because its value has no correlation with any stock market index. Cash doesn’t increase or decrease in value along with the S&P 500. Some investments — such as put options— have negative betas, meaning that they would be expected to move in the opp...
Here’s how to interpret beta: Beta of 1 means an asset is in perfect correlation to the benchmark.In other words, a stock with a beta of 1, or close to it, is expected to move roughly in sync with the benchmark. So if the S&P 500 (our benchmark) goes up 5%, the CAPM would...
aIn a way our programmer is like our coach 在方式我们的程序员是象我们的教练[translate] aVeronique Veronique[translate] aYour portfolio has a beta of 1.24. The portfolio consists of 10 percent U.S. Treasury bills, 55 percent in stock A, and 35 percent in stock B. Stock A has a risk-...
Definition:Unlevered beta is a financial risk measurement that compares the risk of firm without any debt to the risk of the market. In the context of financial leverage, it represents the risk of a firm’s equity in comparison to the industry it operates. ...
Alpha vs. Beta: An Overview Alpha and beta are two of the key measurements used to evaluate the performance of a stock, a fund, or an investment portfolio. Alpha measures the amount that the investment has returned in comparison to the market index or other broad benchmark that it is comp...
Rf= risk-free rate of return βa=betaofa Rm= expected return of the market So, the equation for equity risk premium is a simple reworking of the CAPM which can be written asEquity Risk Premium = Ra- Rf= βa(Rm- Rf) If we are simply talking about the stock market (a = m), th...