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Can Two securities with the same stand-alone risk can have different betas?
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Which of the following best explains why different people have different levels of risk aversionWhich of the following best explains why different people have different levels of risk aversion?
Some people are willing to take more chances than others.
How can you measure volatility using beta?
You can use Beta to measure market volatility because of beta is the elasticity of a stock change as a result of a change in the market. That is, Beta of a sotck is found by comparing the senstivity of a stock's return to the fluctuations in the market.Beta is found by dividing the product of the covwariances of the stock and market retun by the variance of the market.The bench marks of betas are as followed:a risk free investment such as a Tbill (that is guaranteed a return) will have a beta of 0.A portfolio with risk equivalent to the market has a beta of 1.Given those two bench mark, you can gauge at the volatility of the stock/investment by comparing its beta with those two extremes.
What is the difference between a perceived risk and an actual risk?
A perceived risk is a risk in which one thinks of that might happen before commiting an action involving that risk. An actual risk is a risk that has a better likelihood of happening. For example, getting a splinter is a perceived risk while walking barefoot. However, an actual risk is a car crash.
Is Darwin at risk from a tsunami?
no darwin is not at risk from a tsunami
What exactly is a natural gas ETF?
It is a fund with many different types of natural gas stocks and bonds and is useful in diversification which lowers the investors risk. These stocks are from a mix of different companies and types of stock and trades just like the stock.
What is the invest the pooled contributions from many investors in different types of securities to decrease risk?
Mutual funds
Spreading out the risk is called?
In business it means having many investments among many different securities or sectors to reduce the risk of owning any single investment
What is Structured credit products?
bundles of debts sliced into securities, in order to offer different levels of risk and exposure to losses.
Can a tadpole live with a bata?
I wouldn't risk it. betas live alone, and most betas will kill company. buy a separate fish bowl, appropriate for the tadpole when it is older, and larger. :)
How do you calculate risk - free return?
Risk free rate of return or risk free return is calculated as the return on government securities of the same maturity.
What has the author Carl Robert Schwinn written?
Carl Robert Schwinn has written: 'Competition, risk, and the valuation of securities' -- subject(s): Securities, Investments
What has the author Guy P Wyser-Pratte written?
Guy P. Wyser-Pratte has written: 'Risk arbitrage II' -- subject(s): Arbitrage, Securities, Consolidation and merger of corporations, Tender offers (Securities), Risk
What must prospectus disclosures provide?
Summary of the securities offering, risk factors and the ratio of earnings to fixed charges, the use of proceeds, determination of offering price, dilution, plan of securities distribution, description of securities to be registered.
What is a diversified portfolio?
Investing in different types of securities to reduce inherent risk in selecting one type of investment only. Example would be different types of bonds, or technology companies, etc. The only drawback is the more diversified-the more diminished returns. The advantage is reduced risk for the investor.
What has the author Rajiv Srivastava written?
Rajiv Srivastava has written: 'DERIVATIVES AND RISK MANAGEMENT' -- subject(s): Risk management, Derivative securities
Which of the money market securities is the most liquid and considered the most risk-free?
Treasury bills
What do securities brokers do in addition to buying and selling securities?
In addition to buying and selling securities, brokers can advise and educate their clients on investments, saving for retirement, and tolerance for risk. Overall, brokers spend a great deal of time marketing their services and products
