need to calculate beta of the company’s stock? eg: returns for co. are -5%‚ 5%‚ 8%‚ 15% and 10% over 5 years. the returns for stock exchange are -12%‚ 1%‚ 6% 10% and 5% for the same 5 years. How to compute the beta of the company’s stock? * 5 years ago * Report Abuse anilwyd Best Answer - Chosen by Asker Bete is measure of Risk. Year 1 Beta = -5/12 = 0.42 Year 2 Beta = 5/1 = 5 Year 3 Beta = 8/6 = 1.33 Year 4 Beta =10/10 = 1 Year 5 Beta = 10/5 = 2 Overall Beta for five Year =
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the these three stocks: Answer: B‚ B;A 2. Your friend is considering adding one additional stock to a 3-stock portfolio‚ to form a 4-stock portfolio. She is highly risk averse and has asked for your advice. The three stocks currently held all have b = 1.0‚ and they are perfectly positively correlated with the market. Potential new Stocks A and B both have expected returns of 15%‚ are in equilibrium‚ and are equally correlated with the market‚ with r = 0.75. However‚ Stock A’s standard deviation
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If the stock market rises instead of fall as David expected‚ the price of stock market index future contract will decrease and the price of the stocks goes up. In general‚ the systematic risk of the portfolio that cannot be reduced by diversification has been hedged. A hedge is an investment position intended to offset potential losses/gains that may be incurred by a companion investment. In simple language‚ a hedge is used to reduce any substantial losses/gains suffered by an individual or an
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Abstract: The project is done to find out the impact of stock split on the stock market. In our project‚ we have made use of event study methodology to assess the accuracy of stock price reaction of 39 public listed Indian companies in National Stock Exchange (BSE) in the year 2006 and onwards. The abnormal returns (actual returns-returns from regression line) results were taken for 20 days before and after the announcement date to test whether the result is significant or not (Level of significance=5%)
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How to Calculate Beta Beta refers to the volatility of a particular stock compared against the volatility of the entire stock market or‚ in practice‚ a representative index of that market‚ such as the Standard and Poor ’s (S&P) 500. Beta is an indicator of how risky a particular stock is and is used to evaluate its expected rate of return. Beta is one of the fundamentals stock analysts consider when choosing stocks for their portfolios‚ along with price-to-earnings ratio‚ shareholder ’s equity
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Global Asset Allocation Finance 656 (Please return to Fang Song’s locker #552) Michelle Bien Yushao Karen Chiu Srinivas Mudireddy Fang (Derek) Song‚ 12/08/2013 A Study on stock returns and volatility Abstract This paper applies two models to examine the intertemporal relationship between expected returns and market risk. By using ARIMA models‚ two findings can be found: 1) A positive correlation exists between the expected market risk premium and the predictable volatility. 2)
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What does it mean to be an American? I think to be an American it means that you were born in the United States( or if your parents are American) and if you were born in a different country but your parents are Americans and you come back to live here then you’re an American too. If you’re an immigrant and you have went through the whole legal process not just sneak across the any of the American boarders. Some older people seem to think if you were born on American soil (or if your family
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What does it mean to be an American today? This is a very difficult question to answer‚ but I believe that it is not just an academic question. As our society becomes more diverse‚ America will develop a broader and richer culture. At the same time‚ nations depend upon some sort of core values‚ beliefs‚ and identity to cling to. That requires some sort of definition of what it means to be an American‚ so I believe that the questions should be: “How Would You Define an American Today?” An “American”
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What does it mean to be an American for you? We use “American” word so freely but do we know what it exactly means to be an American? Only living in America does not mean that you are an American. Millions of people migrate into the United States of American in order to achieve their dream and earn the name of an American. For hundreds of years the United States has been attracting immigrants from a variety of different countries‚ races‚ and religions to come live in a land full of freedom and opportunity
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What does it mean to be courageous? It means to be strong‚ brave‚ passionate‚ to believe in yourself. That’s what it means to me. You can only accomplish if u receive. Rosa Parks is an perfect example of an act of courage. She was an African American and she was born at the time where racism took place. It started on December 1‚1955 when she refused to give up her seat on a public bus in Montgomery‚ Alabama. Back then African Americans couldn’t eat at the same restaurant‚ or use the same bathroom
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