What does beta measure and how is it interpreted, Finance Basics

Assignment Help:

The Beta of several industry sectors is shown below.

Industry                                                                                            Beta (β)

Banks                                                                                                   0.78      

Food and staples retailing                                                                       0.65

Materials                                                                                               1.11

Utilities                                                                                                 0.79

Food and Beverage and Tobacco production                                            0.57

Retailing (Discretionaries)                                                                     1.28

elecommunication Services                                                                   0.38

 Part A

What does Beta measure and how is it interpreted? In your answer you should refer to some of the industry measures above.

Part B

How does Beta differ from standard deviation? Explain why companies with a high standard eviation will not necessarily have a high beta.


Related Discussions:- What does beta measure and how is it interpreted

End of Chapter Problems, The Audiology Department at Randall Clinic offers ...

The Audiology Department at Randall Clinic offers many services to the clinic''s patients. The three most common , along with cost and utilization data, are as follows: Service Var

Inventory turnover, Ask question #MinimQuestion You are the financial acc...

Ask question #MinimQuestion You are the financial accountant of Donald Bhd, a manufacturer and wholesaler of soft drinks. Donald Bhd is in direct competition with Fizz Bhd and Po

Risk structure of interest rates, risk structure of interest rates 1. Defa...

risk structure of interest rates 1. Default risk 2. Liquidity 3. Income tax consideration 4. Expectations theory

Calculate the nominal, calc the nimonal(annual percentagerete)interest rate...

calc the nimonal(annual percentagerete)interest rate if the iffective interest rate earned on an investment is 16.08%/Unum but interest is calculated at the end of each month

Expectation theory, Expectation Theory The theory states here that the...

Expectation Theory The theory states here that the yield curve depends on the expectation concerning with future inflation rates. The rate on long-term bonds will exceed, If i

Horizontal financial analysis, For this assignment you are acting as a fina...

For this assignment you are acting as a financial analyst for Apple Inc. Apple Inc. Is one of the most innovative companies worldwide. For example, in November 2012 Apple sold 3 mi

Revenue Reserves - Retained Earnings, Revenue Reserves - Retained Earnings ...

Revenue Reserves - Retained Earnings These are undistributed earnings.  Those reserves are retained for the given reasons like: A. To create up for the fall in profits so a

Financial analysis , You are required to select any one company of your cho...

You are required to select any one company of your choice which is listed on either Dubai Financial Market (DFM) or Abu Dhabi Securities Market (ADSM). Send me an email giving at l

Funding venture capital, Funding Venture Capital Whenever a company's ...

Funding Venture Capital Whenever a company's directors look for support from a venture capital institution, so they must distinguish that as: a) The institution will would

Accounts receviable , sir could you please tel me what is A/R process.

sir could you please tel me what is A/R process.

Write Your Message!

Captcha
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