Business
Business, 24.06.2020 05:01, gatewood1058

When analyzing a particular stock's performance compared to the performance of a related benchmark segment of the stock market (x), the slape is a relative risk measurement. The slope depicts fund's volatility against the benchmark. Many financial analysts calculate the slopes for stock funds using the SAP 500 Index as the benchmark This market model assumes that the rate of return of a stock (y) is linearly related to the rate of retum () of the benchmark: In this context the slope is usually referred to as the beta coefficient of the stock. Betais explained at most business-oriented websites, see for example, this Morningstar site.
A beta coercent of means the stocks rate of return moves up and down in perfect harmony with the benchmark market. When the stock's rate of return is more sensitive to changes in the level of the benchmark market than is the average stock. When c541, the stock's rate of return is less sensitive to changes in the level of the benchmark market than is the average stock. Investors with a high tolerance for risk like > 1; they can earn more if the overall market improves slightly, but lose more the market declines even a small amount. Investors with a low tolerance for risk like measures the proportion of the total risk that is related to spedic In this setting measures the proportion of the total risk in the particular stock related to the benchmark market and 1 - company related events and decisions For example, Texaco has a beta coefficient of 0.44, which means that when the overall market rate of return changes by 19, Texaco's rate of return changes only 0.44% So Texaco doesn't move much at all relative to the overall market. An investor with a low tolerance for risk would be attracted to exace because its beta coercient is less than 1
DO THE FOLLOWING:
Apply the market model to the Standard and Poor's Composite Index (the x variable) and the monthly returns of Intel (the variable) for a recent 4-year period, which are stored in columns 1 and 2, respectively in this Excelle What is Intel's beta comicient and what does it tell you about Intel stock?
a) b = 1.42; this means inter's stock is less sensitive to changes in the Standard and Poor's Composite Index than is the average stock
b) b = 101; this means inter's stock is less sensitive to changes in the Standard and Poor's Composite Index than is the average stock
c) b = 0.1; this means intel's stock is more sensitive to changes in the Standard and Poor's Composite Index than is the average stock
d) b = 1.47; this means inter's stock is more sensitive to changes in the Standard and Poor's Composite Index than is the average stock

answer
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 21:30, tilacohen
1. gar principles or "the principles"are intended to do what?
Answers: 2
image
Business, 22.06.2019 08:00, royalkk
In addition to using the icons to adjust page margins, a user can also use
Answers: 1
image
Business, 22.06.2019 10:00, boo6931
Employees at a library check out books to patrons. books have an isbn and a name. the library sometimes has multiple copies of the same book. books have one or more authors. a patron is an individual who has an active (non-expired) library card. for each library card, we store the person's first and last names and their address. for each employee, we store their employee id, current salary, first and last name and their address. we also store the employee id of their current manager. each time we check out a book to a patron we need to store the date of the transaction, the employee who checked out the book to the patron, and the library card of the patron. some employees have library cards. if an employee patron turns in a book late, the fine that they pay is a percentage of their salary. some employees are authors who have library cards—they are allowed to check out as many books as they like.
Answers: 1
image
Business, 22.06.2019 13:10, princessgabbee8452
Paid-in-capital in excess of par represents the amount of proceeds a. from the original sale of common stock b. in excess of the par value from the original sale of common stock c. at the current market value of the common stock d. at the curent book value of the common stock
Answers: 1
Do you know the correct answer?
When analyzing a particular stock's performance compared to the performance of a related benchmark s...

Questions in other subjects:

Konu
World Languages, 23.10.2021 01:00
Konu
Computers and Technology, 23.10.2021 01:00