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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 a beta coefficient?
A beta coefficient measures the sensitivity of an asset's returns to the returns of a benchmark, typically a market index. In finance, it indicates how much an asset's price is expected to change in relation to a 1% change in the benchmark. A beta greater than 1 suggests higher volatility and risk compared to the market, while a beta less than 1 indicates lower volatility. Investors use beta to assess the risk profile of investments and to make informed portfolio decisions.
How to find the beta of a portfolio?
The beta of a portfolio is the weighted average of individual betas of assets in that portfolio. There is an example of portfolio beta calculation here: http://www.riskyreturn.com/portfolio_beta.html
If one required return is 11 percent and another is 15 percent and market risk premium is 5 percent and risk-free rate is 5 percent what is beta of merger?
To find the beta of the merger, we can use the Capital Asset Pricing Model (CAPM), which states that the required return equals the risk-free rate plus beta times the market risk premium. The formula is: Required Return = Risk-Free Rate + Beta * Market Risk Premium. Using the 15 percent required return: 15% = 5% + Beta * 5%. Solving for beta gives us: Beta = (15% - 5%) / 5% = 2. Thus, the beta of the merger is 2.
In the context of the Capital Asset Pricing Model how would you define beta How are beta determined and where can they be obtained What are the limitations of beta?
In the context of the Capital Asset Pricing Model how would you define beta? How are beta determined and where can they be obtained? What are the limitations of beta?
What is the estimated beta coefficient for CBS?
What is the estimated beta coefficient of cbs netwok
How do you find industry beta?
To find industry beta, scroll down the left menu to key stats and ratios. Then click on more ratios from Reuters. Finally, click industry on beta in the valuation ratios.
What is Google's beta coefficient?
1.13
What is McDonald's beta coefficient?
Standard & Poor's gives McDonald's beta as 1.32. Value Line says 0.75.
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 beta 1 and beta 2 in econometrics?
In econometrics, beta 1 and beta 2 typically refer to the coefficients in a regression model. Beta 1 usually represents the coefficient of the first independent variable, indicating its impact on the dependent variable, while beta 2 represents the coefficient of a second independent variable, reflecting its own effect. These coefficients quantify the relationship between the independent variables and the dependent variable, showing how changes in the former are expected to influence the latter. Their significance and magnitude help in understanding the strength and direction of these relationships.
What is a beta coefficient?
A beta coefficient measures the sensitivity of an asset's returns to the returns of a benchmark, typically a market index. In finance, it indicates how much an asset's price is expected to change in relation to a 1% change in the benchmark. A beta greater than 1 suggests higher volatility and risk compared to the market, while a beta less than 1 indicates lower volatility. Investors use beta to assess the risk profile of investments and to make informed portfolio decisions.
When working with the CAPM which of the following factors can be determined with the most precision?
the beta coefficient, b of a relatively safe stock
How do you find zeros when the leading coefficient is one?
The answer depends on the what the leading coefficient is of!
If beta coefficient is 1.4 and the required rate of return is 12.10 and market return is 9.5 what is the risk free rate?
13.3
How to find the coefficient of static friction on an incline?
To find the coefficient of static friction on an incline, you can use the formula: coefficient of static friction tan(angle of incline). Measure the angle of the incline using a protractor, then calculate the tangent of that angle to find the coefficient of static friction.
What does the Greek term BETA mean?
The Greek term "beta" (β) is the second letter of the Greek alphabet. In various contexts, it can represent a range of meanings, such as a measure of risk in finance (beta coefficient) or a designation for a version of software that is still in testing (beta version). Additionally, in scientific contexts, "beta" often refers to a type of radiation or a specific variant of a substance, such as beta particles in physics.
