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

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 12:30, sloane50

land, a building and equipment are acquired for a lump sum of $ 1,000,000. the market values of the land, building and equipment are $ 300,000, $ 800,000 and $ 300,000, respectively. what is the cost assigned to the equipment? (do not round any intermediary calculations, and round your final answer to the nearest dollar.)

Answers: 1

continue

Business, 22.06.2019 13:10, idk1561

You have recently been made a department head of the new regional office. in getting to know your departmental staff, you have noticed that one of your inexperienced employees is not following through on assigned tasks. she is enthused about her new job and wants to get ahead in the organization. which alternative represents the most effective leadership style: a. discuss the lack of follow-through with her and explore thealternative ways this problem can be solved. b. specify what she must do to complete the tasks but incorporate any suggestions she may have. c. define the steps necessary for her to complete the assigned tasks and monitor her performance frequently. d. let her know about the lack of follow-through and give hermore time to improve her performance.

Answers: 1

continue

Business, 22.06.2019 16:40, adreyan3479

Job 456 was recently completed. the following data have been recorded on its job cost sheet: direct materials $ 2,418 direct labor-hours 74 labor-hours direct labor wage rate $ 13 per labor-hour machine-hours 137 machine-hours the corporation applies manufacturing overhead on the basis of machine-hours. the predetermined overhead rate is $14 per machine-hour. the total cost that would be recorded on the job cost sheet for job 456 would be: multiple choice $3,380 $5,298 $6,138 $2,622

Answers: 1

continue

Business, 22.06.2019 19:00, montgomerykarloxc24x

For each of the following cases determine the ending balance in the inventory account. (hint: first, determine the total cost of inventory available for sale. next, subtract the cost of the inventory sold to arrive at the ending balance.)a. jill’s dress shop had a beginning balance in its inventory account of $40,000. during the accounting period jill’s purchased $75,000 of inventory, returned $5,000 of inventory, and obtained $750 of purchases discounts. jill’s incurred $1,000 of transportation-in cost and $600 of transportation-out cost. salaries of sales personnel amounted to $31,000. administrative expenses amounted to $35,600. cost of goods sold amounted to $82,300.b. ken’s bait shop had a beginning balance in its inventory account of $8,000. during the accounting period ken’s purchased $36,900 of inventory, obtained $1,200 of purchases allowances, and received $360 of purchases discounts. sales discounts amounted to $640. ken’s incurred $900 of transportation-in cost and $260 of transportation-out cost. selling and administrative cost amounted to $12,300. cost of goods sold amounted to $33,900.a& b. cost of goods avaliable for sale? ending inventory?

Answers: 1

continue

Do you know the correct answer?

When analyzing a particular stock's performance compared to the performance of a related benchmark s...