If the beta for stock a equals zero then
WebThe Stock Beta can have three types of values: Beta < 0: If the Beta is negative, this implies an inverse relationship between the stock and the underlying market or the benchmark in comparison.Both stock and the market or the benchmark will move in the opposite direction in a negative stock beta scenario.; Beta = 0: If the Beta is equal to zero, then this implies … WebIf the Beta for stock A equals zero, then _____. Select one: a. stock A’s required return is equal to the risk-free rate of return b. stock A’s required return is greater than the …
If the beta for stock a equals zero then
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WebMar 14, 2024 · The beta coefficient can be interpreted as follows: β =1 exactly as volatile as the market β >1 more volatile than the market β <1>0 less volatile than the market β =0 … WebQuestion: If the Beta for stock A equals zero, then; O A stock A's required return is equal to the required return on the market portfolio. B. stock A's required return is equal to the risk-free rate of return. C. stock A has a guaranteed return. D. stock A's required return is greater than the required return on the market portfolio.
WebJan 18, 2024 · A stock that swings more than the market over time has a beta greater than 1.0. If a stock moves less than the market, the stock's beta is less than 1.0. High-beta stocks... WebIf the Beta for stock A equals zero, then: A) stock A has a guaranteed return. B) stock A's required return is equal to the required return on the market portfolio. C) stock A's required return is equal to the risk-free rate of return. D) stock A's required return is greater than the required return on the market portfolio.
WebStock W has an expected return of 12% with a standard deviation of 8%. If returns are normally distributed, then approximately two−thirds of the time the return on stock W will … WebQuestion: If the Beta for stock A equals zero, then; O A stock A's required return is equal to the required return on the market portfolio. B. stock A's required return is equal to the risk …
WebMar 13, 2024 · The beta (denoted as “Ba” in the CAPM formula) is a measure of a stock’s risk (volatility of returns) reflected by measuring the fluctuation of its price changes relative to the overall market. In other words, it is the stock’s sensitivity to market risk.
WebDec 5, 2024 · If the Beta of an individual stock or portfolio equals 1, then the return of the asset equals the average market return. The Beta coefficient represents the slope of the line of best fit for each Re – Rf (y) and Rm – Rf (x) excess return pair. tabitha newsometabitha nenninger md omahaWebIf the Beta for Stock X equals zero, then according to the CAPM: a, stock X's required return is equal to the risk-free rate of return. b. stock X has a guaranteed return. e. stock X's required return is equal to the required return on the market portfol d. stock X's required return is equal to the stock's standard deviation. 17. tabitha newmanWebJul 6, 2015 · A stock that swings more than the market over time has a beta greater than 1.0. If a stock moves less than the market, the stock's beta is less than 1.0. High-beta … tabitha newman princeton inWebApr 12, 2024 · Throughout his journey he was, “always willing to get on a plane,” which he said has served him well. 5. Make it easy to take risks. Altman advised that you, “have your basic obligations ... tabitha new vegasWebA Beta of 0 does not imply zero variance, securities still have idiosyncratic risk (i.e. a random component of return not explained by systematic exposure). A risk-free investment is still … tabitha niceWebBeta = 0: If the Beta is equal to zero, then this implies no relationship between the movement of the returns of the stock and the market or the benchmark. Hence, both are … tabitha newton