tfin202 group assignment part 2.docx - Unit Name Corporate Finance Unit code TFIN202 Assignment Group assignment Contribution Equal Group Members Sajib

# tfin202 group assignment part 2.docx - Unit Name Corporate...

• Homework Help
• 4

This preview shows page 1 - 3 out of 4 pages.

Unit Name: Corporate Finance Unit code: TFIN202 Assignment: Group assignment Contribution: Equal Group Members: Sajib Giri (20193015) Anubhav Pyakurel (20187174) Ratima Wuttitanadech (20183015) Abdul Zohab khan (20187096) Anish Aryal (20193152) Due date: 14 october, 2019
1. Beta is a measure of security’s systematic risk, describing the amount of risk contributed by the security to the market portfolio, the beta company’s asset is simply a weighted average of betas of its equity’s and its debt. Beta is used capital asset pricing model (CAPM) to calculate expected return of an asset. By using beta calculation financial specialist understand weather a stock moves in the same direction as the rest of the market, beta is very important in finance because it helps to measure the risk of the investment. Beta calculation formula is: Beta coefficient( β ) = Covariance ( R e , R m )/ variance ( R m ) Where, R e = the return on an individual stock R m = the return on the overall market 2. Asset beta can be found in part 1 because the number show on the both graph that variable 1 on the y-axis and x-axis. The calculating beta is the covariance of the return of an asset with the return of the benchmark divided by variance.

#### You've reached the end of your free preview.

Want to read all 4 pages?

• Three '17
• syan

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern