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What is the market cap for First Trust Low Beta Income ETF FTLB?
Wiki User
∙ 9y ago
As of July 2014, the market cap for First Trust Low Beta Income ETF (FTLB) is $2,036,030.72.
Wiki User
∙ 9y ago
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A US Treasury bill has a beta of 0 while the overall market has a beta of what?
Beta is the measure of a security's volatility compared to the volatility of the market as a whole. Therefore, the market as a whole has a beta of 1.
What would make a firm's beta increase?
The beta of a firm's stock is dependent on the volatility of the stock relative to the overall market. So if the stock's volatility increased relative to the overall market, it's beta would increase as well.
If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 what is the beta coefficient?
the beta is 1 the beta is 1
What is the basis of the beta for investment decision and can you explain the usefulness and relevance of the concept of the beta in the investment?
Beta describes the relationship between the volatility of a stock with respect to the market as a whole (which the market represented by a suitable index). A beta of less than one means that the stock is less volatile than the index, and vice-versa. Basically, if a benchmark returns 10%, and you're considering a stock with a beta of 1.5%, that means the stock needs to have a return of greater than 15% for it to be worthwhile. The related link contains much more information
Is it possible that a risky asset have negative beta?
Yes, it is possible that a risky asset may have a negative beta. Given that beta measures "relative risk" to a particular market, index, etc., a negative beta suggests that the the particular asset class performs well when the given market (the market/index to which the beta was computed) performs poorly (negative coorelation). Using the phrase "risky asset" only suggests that the asset's ability to return value to the investor is volatile. For example, a new set of ETFs released in November 2008 track the Case-Shiller housing index. The first, UMM (NYSE), goes up when home prices go up. The second, DMM (NYSE), goes down when home prices go down. If we assume that the Case-Shiller index is the basis for beta computations, one would expect UMM's beta to be positive (2.0 since the securities have leverage of 200%) and DMM's beta to be negative (-2.0). At the end of the day, negative beta opportunities are good in that they provide a way to diversify out different types of risk in a portfolio holding multiple asset classes.
What is the symbol for First Trust Low Beta Income ETF in NASDAQ?
The symbol for First Trust Low Beta Income ETF in NASDAQ is: FTLB.
A US Treasury bill has a beta of 0 while the overall market has a beta of what?
Beta is the measure of a security's volatility compared to the volatility of the market as a whole. Therefore, the market as a whole has a beta of 1.
What does it mean by positive beta in finance?
A positive beta means that the asset generally follows the market. A negative beta shows that the asset inversely follows the market; the asset generally decreases in value if the market goes up and vice versa.
If a stock has a beta equal to one?
A beta of 1 indicates that the security's price will move with the market.
What is standard deviation divided by AVERAGE net income?
beta
What is debt beta?
Beta of a debt is the ration of covariance of the debt return with the market return.If debts are traded then beta of the debt is estimated by regression.
Why market beta is always 1 How is it calculated?
by calculations
Is Beta is the slope of the security market line?
yes
If portfolio a has a beta of 1.5 and portfolio z has a beta of -1.5 what do the two values indicate?
Simple scenario: Taking into account beta of index is set at 1.0; Lets say market increases by 5% Beta of 1.5 would indicate that the particular portfolio would increase by 7.5% as for beta of -1.5, the portfolio would decrease by 7.5% Beta is a measure of sensitivity of market base on the reference index. Negative beta would mean that the portfolio is inversely proportional to market performance.
What does beta measures?
In the world of finance: BETA is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns.
2 Scenarios If market return is 5 percent stock's expected return is -2 percent If market return is 25 percent expected return is 38 percent What is its beta?
The beta is the relationship of a stock's expected return to the broad market's return. A "high beta" stock will have a beta over 1.00, and thus move up more than the market when the market is advancing, and decline more than the market when the market is declining. A "low beta" stock will decline less than the market, or advance less than the market, depending. The problem with beta is that it assumes a linear relationship, and what you describe here clearly is not. Your stock falls when the market rises a little, and rises more than the market when the market is advancing. To calculate beta, you should look at a longer term analysis of your stock and the market -- say, weekly observations over a year. Most betas are calculated using this length of data. But check formulas -- many different ones are out there. Also remember that beta is only one measure of a stock's performance. Alpha is the performance of a stock that cannot be explained by its beta and the broad market movement. And of course, all of this is a "hypothesis" of market behavior which is useful in understanding broad actions, but very weak in predicting individual stock behavior.
Is Beta the slope of the security market line?
No- the market risk premium is the slope of the Security Market Line (SML).
