The markets beta is 1 the a firm that has a beta 1

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Unformatted text preview: ket risk. The stock is no more or less market The volatile than the market. volatile A firm with a beta > 1 is more volatile than firm beta more the market. (ex: technology firms) The market’s beta is 1 The A firm that has a beta = 1 has average firm beta market risk. The stock is no more or less market The volatile than the market. volatile A firm with a beta > 1 is more volatile than firm beta more the market. (ex: technology firms) A firm with a beta < 1 is less volatile than firm beta less the market. the The market’s beta is 1 The A firm that has a beta = 1 has average firm beta market risk. The stock is no more or less market The volatile than the market. volatile A firm with a beta > 1 is more volatile than firm beta more the market. (ex: technology firms) A firm with a beta < 1 is less volatile than firm beta less the market. the (ex: utilities) (ex: Calculating Beta Calculating Calculating Beta Calculating XYZ Co. returns 15 10 S&P 500 returns 5 -15 -10 -5 -5 -10 -15 5 10 15 Calculating Beta Calculating XYZ Co. returns 15 S&P 500 returns -15 .. . .. . . 10 . . . . .. . . . . 5. . .. . . .. . 5 . -10 -5 -5 10 .. . . . . . . -10 .. . . . . . -15 . 15 Calculating Beta Calculating XYZ Co. returns 15 S&amp...
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