Which company would you think has the highest beta

Assignment Help Financial Management

Reference no: EM132065388

Suppose there are three different companies. The first one, Trendy Tech Inc., has investors who are “fair-weather friends.” When the stock market is going up, everybody wants to invest in Trendy Tech, but as soon as the market goes down everyone jumps ships and sells their shares. The second company is Oily Oil Inc. Oily’s stock price seems to depend only on the price of oil and nothing else. Finally, there is Conglomerated Conglomerate Inc. Conglomerated is a giant company with holdings in almost every industry imaginable—from cell phones to grocery stores and even amusement parks. Based on this information, which company would you think has the highest beta? The lowest beta? Which one do you think has a beta closest to 1?

Reference no: EM132065388

Questions Cloud

Create a simple application in xcode : Collect the date of birth using a modal view with a date picker. Gender should use a toggle (segmented button) and level of education an action sheet

How sociological principles and concepts operate : The purpose of the project is to see how sociological principles and concepts on deviance operate outside the classroom and in everyday life.

Global leadership success through emotional and cultural : Prepare a five (5) minute presentation on: As outside consultants hired to provide a set of recommendations to the IJV board

Cardboard file boxes and three shredding machines : One day her boss takes her into a back room containing numerous cardboard file boxes and three shredding machines,

Which company would you think has the highest beta : which company would you think has the highest beta? The lowest beta? Which one do you think has a beta closest to 1?

International project manager : What is the difference between a project, from the view of the PMBOK, and the view of a CPE from Grisham (2009)

Analyze the table that contains data from the emergency room : You need to analyze the table that contains data from the emergency room and make recommendations on just one page, single spacing

Required rate of return of the stock using capm equation : If the risk-free rate is 0.0200, the return of the market is 0.1350 and beta is 1.18, what is the required rate of return of the stock using the CAPM equation.

Building an iconic craft beer brand : Case: Soweto Gold: Building an Iconic Craft Beer Brand Readings: From HBS Five Pillars for Doing Business in Africa: A Roadmap to Opportunities

User Account

All Pages