Beta = Covariance/Variance where: Covariance=A measure of an investment's return in relation to the market Variance is a measurement of how the market deviates from its mean.
Compute the beta for ABC Company stock ?
The standard deviation of returns for the asset could be divided by the standard deviation of returns for the benchmark to determine beta. The correlation between the security's returns and the benchmark's returns of 32.21 percent is multiplied to arrive at the final number.
Given that AAPL's beta of 0.6035 suggests the stock theoretically experiences 40 percent less volatility than SPY, AAPL would be regarded as being less volatile than SPY in this situation.
A stock with a beta greater than 1.0 fluctuates more than the market over time. A stock's beta is less than 1.0 if it moves less than the market. High-beta equities typically carry higher risks but also have a bigger potential reward. Although they carry less risk, low-beta equities often offer lesser returns.
Because of this, beta is frequently employed as a risk-reward ratio, which aids investors in deciding how much risk they are ready to accept in order to reap the potential rewards. It's crucial to take stock price volatility into account when determining risk. Beta is a useful proximate for risk if you view of risk as the likelihood that a stock would depreciate in value.
Beta = Covariance/Variance where: Covariance=A measure of an investment's return in relation to the market Variance is a measurement of how the market deviates from its mean.
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Answer:
-1 to +1
Explanation:
The correlation coefficient range is from -1 to +1.
-1 shows that there is perfect negative correlation.
+1 shows that there is perfect positive correlation.
0 shows there is no correlation.
Positive correlation shows that with the increase of let's say X, there would also be increase of Y. They would positively move together
Negative correlation shows that two variable move in opposite direction.
Answer:
Cost of goods manufactured
Explanation:
Cost of goods manufactured are reported on the face of income statement because it's a critical factor in arriving at the profit or loss position at the end of a period. Cost of goods manufactured takes cognizance of the material costs, labour and overhead costs involved in production. This determines the overall financial status of a company, and allow a decision maker to know if the business is doing good or not.
Answer:
the answer is 3.5 billion i think
Responder:
Real Madrid
Explicación:
El Real Madrid ha ganado la Liga de Campeones un récord asombroso 13 veces. (Todo lo que hice fue buscar en Google "quién es el equipo con más campeones" y eso es lo que obtuve) Espero que esto ayude.
