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:
A.
Explanation:
Another name for specialization, this is when an individual focuses
on one specific skill in the field.
Answer:
Correct option is (a)
Explanation:
GAAP is the abbreviation for Generally Accepted Accounting Principles. These are guiding principles that help in recording accounting transactions. These are developed over the course of time and includes comprehensive guidelines used by accountants over the years in preparing financial statements.
GAAP ensures reliability and comparability of financial statements.
its like keeping the funds private and makeing sure no one knows alot about it
A<u> strategic alliance</u> represents a long-term partnership between two or more companies established to help each firm build competitive market advantages.
long-term partnership agreements regularly incorporate provisions that require consent from the opposite companions earlier than a brand new accomplice is added -- in large part to make certain that the unique harmony and electricity stays intact.
Long-time period relationships have a tendency to remain everywhere from to a few years, with couples breaking apart round this time.
A long-term partnership purchaser dating way which you paint on constructing a dating together along with your clients to create high-stage loyalty to your company. That's the exception that your commercial enterprise can get on the street to success.
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