Key component of the capital asset pricing model

Assignment Help Operation Management
Reference no: EM132247307

Discussion: Beta

Why do you think everybody says “Beta is dead"?

Beta', which is a key component of the Capital asset pricing model, has taken some scrutiny over the past few decades from investors who argue that it does not fully capture all risks involved with a security. Everybody considers Beta to be end for multiple reasons. Investors wanted to get better risk options and see other answers . They were able to come up with other ways for finding risks and even higher risks. Beta wasn't dead but they found other ways for not using it. They came up with a different model that measures value, size and proxy for the return of the market. There is other things to look for besides risk. Investors expect a large return back and beta may not help here. Other equations can help find better answers than just beta. Investors use other tools to determine what stocks to buy. Beta isn't dead but just isn't used.

Required: Why do you think everybody says “Beta is dead"? Write 150 words. (I've posted one example above)

Please write in your own words and apppropriate answers. 

Reference no: EM132247307

Questions Cloud

Do you think the global public health system : Do you think the global public health system is ready to tackle global problems such as water scarcity? Why or why not?
What is meant by perceived problem and real problem : What is meant by perceived problem and real problem? What are the first four steps that should be used in defining the problem?
Two minute walk of baggage claim : An Airline at the Houston Airport tried to please passengers by always docking airplanes within a one to two minute walk of baggage claim.
Required state of mind for embezzlement liability : According to the California Penal Code, what appears to be the required state of mind for embezzlement liability?
Key component of the capital asset pricing model : Beta', which is a key component of the Capital asset pricing model, has taken some scrutiny over the past few decades from investors who argue
Distribution partner employ within the primary target market : What kind of promotional activities would a distribution partner employ within the primary target market?
Seemingly real conversations work effectively : Do these “seemingly real” conversations work effectively to shift your opinions of products and services? Explain.
Some legal ramifications behind mandating reporting : what are some legal ramifications behind mandating reporting?
Relationship between training and development : Which of the following is true of the relationship between training and development?

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd